See what’s happening in global markets: Hardeep Puri after LPG cylinder price hike

Jul 07,2022

Union minister of petroleum and natural gas Hardeep Singh Puri stated that the prices of petroleum products are fixed under the Administrative Pricing Mechanism. “You should also check the international prices of crude oil. India is one of those countries where fuel is not available. There is APM,” the minister said.

After Oil Marketing Companies hiked 14.2-kg LPG cylinder prices by Rs 50, union minister of petroleum and natural gas Hardeep Singh Puri has reacted saying that you can't look at fuel price in isolation, see what is happening in the global markets.

While maintaining that the Central government has managed to keep the prices stable, Puri stated that the prices of commercial LPG cylinders have been cut by about Rs 200.

He also underscored that the prices (of petroleum products) are fixed under the Administrative Pricing Mechanism, adding that all the stakeholders will have to work together. “You should also check the international prices of crude oil. India is one of those countries where fuel is not available. There is APM,” the minister said.

Taking note of how after the Centre reduced excise duty, BJP-ruled states slashed VAT, Puri said, “We have been able to hold the prices steady. Subsidies also given for specific targets." The Centre reduced the excise duty first on Diwali eve last year on November 4, 2021 and then on May 21, 2022.

After Wednesday’s hike in prices of LPG cylinders, domestic cooking gas cylinders now cost Rs 1,053 in Delhi, Rs 1,052.50 in Mumbai from Rs 1,002.50 earlier, to Rs 1,079 in Kolkata from Rs 1,029 earlier, and Rs 1068.50 instead of Rs 1,058.50 in Chennai.

The price of the 5-kg domestic cylinder price was also hiked by Rs 18; however, the 19-kg commercial cylinder costs Rs 8.50 cheaper.

Meanwhile, on May 21, the government decided to cut excise duty on petrol by Rs 8 per litre and on diesel by Rs 6 per litre. Finance Minister Nirmala Sitharaman said, "This will reduce the price of petrol by Rs 9.5 per litre and of Diesel by Rs 7 per litre."

The Centre also announced a subsidy of Rs 200 per gas cylinder (upto 12 cylinders) to over 9 crore beneficiaries of Pradhan Mantri Ujjwala Yojana this year.