The humble cylinder will cost a whopping 50 per cent or more thanks to international rate of liquefied petroleum gas seeing a price rise. The day won't be far when the Oil Ministry requests for a 100 per cent hike, making this New Year not a happy one for many.
With the international rate of LPG seeing a 66 per centage jump, the government will find the subsidy component becoming costly as well. India imports close to 3 million tonnes of LPG a year and keeping up with the international rates is not sustainable beyond a limit, according to insiders in the industry. The government's subsidy component per cylinder has bounced to Rs 367 per refill making it somewhere in the range of Rs 345-Rs 350.
Global LPG requirement shot up due to the harsh weather sweeping Europe and US thus hiking heating charges by a few notches. Priced at $600 a tonne in August, the rates jacked up by nearly $1,000 a tonne and threatens to increase further following the bitter weather.
After facing flak for hike in fuel prices, the Oil Ministry will have to seek the approval of the Empowered Group of Ministers (EgoM) before it agrees on the price rise.