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Is Cooking Gas Prices Burning The Pockets Of Common Man?

With growing inflation, record-high cooking gas prices have contributed to people's concerns.

Cooking gas has recently become more expensive, with state-owned oil marketing businesses raising domestic liquefied petroleum gas cylinder costs by ₹50/cylinder. The commercial 19-kilogram LPG refill will now be more than ₹350 more expensive. 

The new rates.

As a result, the price of a 14.2 kg domestic cylinder for families has risen to follow.

  1. ₹1,103 in Delhi.
  2. ₹1,102.50 in Mumbai.
  3. ₹1,118.50 in Chennai.
  4. ₹1,129 in Kolkata. 

A 19-kg LPG cylinder costs are increased according to the most recent adjustment:

  1. ₹2,119.50 in Delhi.
  2. ₹2,071.50 in Mumbai.
  3. ₹2,268 in Chennai.
  4. ₹2,221.50 in Kolkata.

Previously, the government hiked commercial gas cylinder costs by INR25/cylinder at the start of this year.

Is Cooking Gas Prices Burning The Pockets Of Common Man?

The raise has been blasted by opposition political groups, with some calling for a reversal. The decision by Indian Oil, BPCL, and HPCL comes amid growing concerns about rising prices across the board, with housing and vehicle loans getting more costly and job security becoming more dubious, particularly in the technology industry. The new LPG price increase comes just after the completion of elections in a few northeastern states, just before the Holi holiday.

The giants in the cooking gas sector.

The three oil marketing companies, who control the lion’s share of the LPG market, had already raised home LPG costs by ₹50 per refill in July 2022. Except for those granted LPG connections under the Ujjwala plan for economically disadvantaged families, most Indian households are either ineligible for or have given up their subsidy, and consequently bear the brunt of price increases.

Whilst oil companies have the legal authority to change LPG pricing every month, they prefer to utilize this ability more for commercial cylinders or larger refills used by enterprises ranging from tea shops to restaurants.

The demand for ‘Hike reverse’.

The Congress and the Communist Party of India (Marxist) have slammed the Narendra Modi administration over the LPG price rises, asking that they be reversed immediately.  Speaking at a news conference at the Congress headquarters in Delhi, party spokesperson Gourav Vallabh suggested that the Union government learn from the Congress-ruled state of Rajasthan on how to maintain cooking gas costs of around ₹500.

The Congress have slammed the Narendra Modi administration over the LPG price rises.

Mr. Vallabh said that throughout the nine years of the BJP administration, the Government only paid a subsidy cost of 36,500 crores for LPG cylinders, but the Congress-led UPA government paid a subsidy bill of 2.14 lakh crore between 2004 and 2014. In March 2014, the household subsidized cooking cylinder cost INR410.50. Prices have risen by 180% in the last nine years.

The loot doesn’t stop there. The Modi administration levied a 5% tax on LPG cylinders and an 18% tax on commercial gas. He said that the reason for the poor 4.4% GDP growth in the third quarter is that manufacturing is contracting, by -1.1%, and private consumption is not rising and that this is not supposed as a justified form of the economic governance model of any democratic territory.

The common man’s burden.

The CPI(M) Polit Bureau also sharply denounced the raise, claiming that it added to the burden already placed on people by rising food and vital commodity costs.

With this increase, more individuals would abandon the use of subsidized cooking gas cylinders because they just cannot afford them. Around 10% of people covered by the Ujjwala Program did not receive refill cylinders last year. About 12% required only one refill. According to the Polit Bureau statement, 56.5% accepted just 4 or fewer refills against the minimum needed yearly average of 7+ cylinders and an entitlement of 12 cylinders per year.

The party also stated that the price of commercial LPG cylinders was raised for the second time this year. This is certain to raise input prices for all processed food goods, fueling future price increases,” the party claimed. Noting that this “cruel rise” has occurred against a backdrop of rising unemployment, poverty, and inflation in the country, the Polit Bureau requested that it be reversed immediately.

The last line.

Before 2014, the government subsidized the price of home gas cylinders for the customer, ensuring that household budgets were not pressured. Following 2014, the government’s decision to reduce subsidies and enable prices to be administered by the Centre affected several things for the common man’s cooking gas spending.

Is Cooking Gas Prices Burning The Pockets Of Common Man?

India has boosted its sourcing from Russia at steep discounts, but the gain has not been passed on to Indian customers. With growing inflation, record-high cooking gas prices have contributed to people’s concerns. Voices from the ordinary man repeat that the government has developed new methods to greet the country throughout the years – by raising the price of vital things and adding to the common man’s difficulties.

edited and proofread by nikita sharma

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