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.
