HYDERABAD: Oil companies have delivered another blow to the public, increasing the price of domestic LPG cylinders by ₹50. The Centre also raised excise duty on petrol and diesel by ₹2 per litre, adding to the burden on consumers.
Union Petroleum Minister Hardeep Singh Puri announced the hike on Monday. The new price of a 14.2 kg domestic LPG cylinder will be ₹853, up from ₹803. For Ujjwala scheme beneficiaries, the price will go from ₹503 to ₹553. These rates will come into effect from Tuesday.
Petrol and diesel prices will also rise due to the excise duty hike. In Hyderabad, petrol will now cost ₹109.66 per litre, up from ₹107.66. Diesel will rise to ₹97.82 from ₹95.82. In Vijayawada, petrol will increase from ₹109.76 to ₹111.76, and diesel from ₹97.51 to ₹99.51.
This comes despite a steep fall in global crude oil prices over the past week, dropping by around $10 to a three-year low. Many had expected this drop to lead to cheaper fuel domestically, but instead, the government raised duties.
The Ministry of Petroleum stated on social media that the price hike won’t reflect at retail pumps immediately, as oil companies may absorb the cost due to falling global prices. The increase in excise duty follows market concerns over a US-China trade war and the global economic slowdown.
Despite the international drop in crude prices, Indian consumers now face higher fuel costs, both for cooking and transport.
