Now, LPG prices set to rise

Oil companies demand price of LPG and diesel be raised. While petrol has seen continuous hikes since 2010, LPG and diesel have remained largely stable

Oil companies demand price of LPG and diesel be raised. While petrol has seen continuous hikes since 2010, LPG and diesel have remained largely stable

Just one week after a steep rise in petrol prices, you can expect a hike in diesel and Liquid Petroleum Gas (LPG) prices too. The Empowered Group of Ministers (EGoM) will meet early this week to consider the demand from oil companies to increase diesel and LPG rates. The oil companies are demanding that diesel prices be increased by Rs 4 per litre, and LPG by Rs 25 per cylinder to bridge the gulf between domestic and international rates. The hike is likely to be implemented because oil companies are losing approximately Rs 18 per litre on diesel, and approximately Rs 320 on a standard 14.2 kg cooking gas cylinder.


People may soon have to start stocking up on LPG cylinders, if a Rs 25
per litre hike in prices is approved, as demanded by oil companies. file
pic

In June 2010, the government had deregulated the control of petrol prices to oil marketing companies. However, the decision on increasing the cost of other petroleum products like diesel, LPG and kerosene rests with the EGoM. While petrol prices have been rising steadily since June 2010, diesel prices haven't changed for almost 11 months. A senior official with the Indian Oil Corporation told Sunday MiD DAY on condition of anonymity, "The meeting with the EGoM will take place early next week. We are very firm about the hike in prices. It is the only way to minimise the loss incurred per litre diesel."

In Mumbai, the per litre cost of diesel may be revised to Rs 45.98; an increase of Rs 4 from Rs 41.98. The cost of LPG cylinders could go up to anywhere between Rs 365 and Rs 375.

Rise in Petrol Price since June 2010

Current LPG and diesel rates

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