Price rise in LPG Cylinder: Budget of the middle class in soup

Liquefied Petroleum Gas (LPG) has become costlier by an increase in the price by Rs 25 each even the price of subsidized gas has also risen.  It is a second straight increase in a fortnight, now the total increase has gone to Rs 190 per cylinder since January. The price of the commercial cylinder has also gone up by Rs75 per cylinder. In less than two months, this is the third increase in LPG refill prices.

Non-subsidized LPG rates were also raised by Rs 25 per cylinder on August 1 and then on August 18. Now the price hike in both categories of LPG gas- subsidized and non-subsidized reaches Rs 884.50 per 14.2kg cylinder in Delhi, Rs. 891.5 in Kochi, and Rs900.50 in Chennai. Looking back at previous prices, the LPG refills have more than doubled from Rs 410.50 on March 1, 2014, in Delhi.

According to the government policy, each household is supplied with 12 cylinders weighing 14.2kg at subsidized or below-market rates.

If the household has a requirement beyond this quantity, it had to be bought at market price or non-subsidized rates. The monthly increase in price resulted in the elimination of subsidies by May 2020.

The constant revision in the price of LPG has hugely impacted the middle-class household budgets. Families who have a limited source of income, or have a single handful of income are struggling to avail cooking gas.

Apart from this, the dreadful impact of Covid 19 has snatched away the only breadwinner from some families. In such circumstances, a price hike in cooking gas is an additional burden to endure. The middle-class families who have a budget set for their household necessities, find it as a big hole in their pockets as spending Rs1000 every month from a low salary is almost impossible.

During a long lockdown period, some people have lost their jobs which is another challenge.

These middle-class families are now exploring other options so that they can make both ends meet. Some are beginning to think about coal-fed ovens which might resolve this problem to some extent. How far this option will work, is still not clear.

Despite these challenges, LPG is considered the most commonly used fuel for cooking due to these reasons:

The most important thing about the LPG cylinder is that it takes less space in the kitchen and is easy to store. It is non-toxic when burnt, hence, doesn’t create any harmful environment.

It is an instant fuel, doesn’t emit black smoke or soot. The flames can be adjusted according to requirements.

In India, LPG cylinders come in two categories-domestic and non-domestic or commercial. The domestic cylinder can be bought at subsidized rates at 5kg and 14.5kg weight, however, the subsidy amount differs from city to city.

The commercial cylinders come in 5kg, 19kg, and 47.5kg weight and are excluded from any subsidy. After a significant rise in petrol price, the price rise in LPG cylinders is creating massive disappointment in middle-class families in India, how far the government will pay attention to this, is a burning question.