After 137-day break, fuel rates head north

Workers load an LPG cylinder into a vehicle at a distribution centre near Amritsar on Tuesday. Pic/AFP

Petrol and diesel prices were on Tuesday hiked by 80 paise a litre each while domestic cooking gas LPG rates were increased by Rs 50 per cylinder as state oil firms ended an over four-and-half month election-related hiatus in rate revision, fanning inflation fears.

In Mumbai, the petrol price has been hiked by Rs 0.84 per litre to R110.82, and diesel by Rs 0.86 to Rs 95.

The rates, which differ from state to state depending on the incidence of local taxes such as VAT, are likely to continue to rise over the next few days as state oil firms recoup losses from keeping prices on hold for a record 137 days.

The price of non-subsidised LPG cylinders has been increased to Rs 949.50 per 14.2-kg cylinder in the national capital and Mumbai, and to Rs 976 in Kolkata.

LPG prices had gone up by close to Rs 100 per cylinder between July and October 6, 2021, before criticism halted the monthly revision in rates.

Non-subsidised cooking gas is the one that consumers buy after exhausting their quota of 12 cylinders at subsidised or below market price. However, the government pays no subsidy on LPG in most cities and the price of the refill that consumers, including the poor women who got free connection under the much-talked Ujjwala scheme, undertake is the same as non-subsidised or market price LPG.

The non-subsidised rate had peaked at Rs 1,241 in January 2014, but at that time, the government provided as much as Rs 600 per cylinder subsidy.

The resumption of fuel price hikes has fanned concerns of stoking inflation, which is already above the targeted 6 per cent level.

The Opposition parties were quick to attack the government on the price rise, with Congress, TMC and Left parties forcing adjournment of proceedings in the Rajya Sabha.

Rs 949
New cost of a 14.2-kg LPG cylinder in Mumbai, Delhi

Toll relief for locals

New Delhi: Union minister Nitin Gadkari on Tuesday said the government will provide passes to locals with Aadhaar cards who live near toll plazas. He that there will be only one toll plaza within 60 kms. "...if there's a second toll plaza, then it will be shut in next three months," he said.

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