Central Government’s clarification: Petroleum companies were incurring a loss of Rs 703 on each cylinder.

New Delhi, June 7. A day after the increase in the price of domestic LPG cylinder (LPG) by Rs 29, the Central Government defended its decision, saying that despite the sharp rise in gas prices in the international market, families in India are getting LPG at a cheaper price compared to other countries of the world.

domestic Actual cost of LPG cylinder supply 1600 more than Rs.

Giving clarification, the government said that before the latest changes, public sector petroleum companies were incurring a loss of Rs 703 on the sale of each cylinder. The government also said that due to geopolitical tensions in West Asia and supply disruption in the Strait of Hormuz, the global benchmark ‘Saudi contract price’ of LPG has increased by about 46 per cent since February. Due to this, the actual cost of supply of domestic LPG cylinder has exceeded Rs 1600.

domestic Loss on LPG increased to almost in the last financial year 60,000 crore rupees

The Center says domestic consumers are paying only Rs 942 while the bulk of the remaining cost is being borne by public sector petroleum marketing companies and the government. According to the government, losses on domestic LPG rose to nearly Rs 60,000 crore last financial year, from Rs 41,338 crore a year earlier. To partially compensate for this loss, the Central Government has approved giving compensation of Rs 30,000 crore to petroleum companies.

in domestic production 60 increase over percentage

The government also said that domestic production was increased by more than 60 percent to maintain LPG availability in the country during the crisis. Arrangements were made for additional imports from countries like America, Canada and Algeria.

In comparison to many countries, domestic LPG prices still low

The government claims that domestic LPG prices in India are still low compared to many countries including Pakistan, Nepal, Bangladesh, Sri Lanka and developed countries like America, Australia and Canada. According to the government, this change in prices has been done with the aim of protecting consumers from the full impact of global prices and ensuring uninterrupted availability of LPG across the country.

Domestic prices have increased by Rs 89 in 3 months LPG price

It is noteworthy that after the increase of Rs 29, the price of 14.2 kg domestic LPG cylinder in Delhi has now become Rs 942, which was earlier Rs 913. The cylinder will be available for Rs 642 after the beneficiaries of Pradhan Mantri Ujjwala Yojana (PMUY) get a subsidy of Rs 300 four times a year. However, last year this subsidy was announced nine times a year. Earlier on March 7, the price of domestic LPG was increased by Rs 60 per cylinder. In this way, the price of 14.2 kg LPG cylinder has increased by a total of Rs 89 within three months.