Out of 157 countries, consumers in India are paying the highest price for LPG (Liquefied Petroleum Gas) or cooking gas. This basic commodity has seen a steep rise in the last year, and while the government is blaming external factors such as the Ukraine-Russia war, the opposition is pointing fingers at the administration. Amidst all this, the common man seems to be descending into the dark ages once again.
When did the last price hike happen?
The prices were last hiked on March 22, 2022 by Rs 50. Just within the last one year, prices of LPG gas have increased by more than 60 per cent.
What does the government blame the latest price hike on?
The Modi government has placed the blame for the rise in LPG prices on the ongoing war between Russia and Ukraine. The increase in demand after the lifting of COVID restrictions might also have contributed to the rise.
How is the price rise impacting Indians?
LPG or cooking gas is a necessity, with 70 per cent of Indian households using it as primary cooking fuel. A steep rise in LPG prices cuts into their income, leaving them with lesser money to purchase other necessary or luxury items, impacting their purchasing power. The rise in LPG prices has hiked the demand for firewood, which, in turn, will have an impact on forests and air pollution.
How much is LPG priced right now?
India is paying $115.4 per barrel (159 litres) for crude oil right now. This is a steep hike from $41 per barrel in November 2020. These prices are benchmarked to international prices of petroleum, set by Saudi Arabia's national oil company Saudi Aramco. That roughly means that the price of per litre crude oil is Rs 55. The actual cost that the consumers bear for LPG consists of the Goods and Services Tax, which is charged at 5 per cent for domestic LPG cylinders and the Distributors Commission.
What has the reaction been to the price hike?
Politicians from the opposition have hit out against the government, slamming the rise in LPG prices. Jawhar Sircar, TMC MP for Rajya Sabha tweeted, "What happens when you raise commercial cylinder cost to Rs 2,355? Domestic cylinders will be black marketed, there’ll be fake accounts, bribes! More importantly: food outside (that all of us have to have) will cost astronomical prices."
CPI (M) General Secretary Sitaram Yechury has called it an "attack on the labour class" and has said that the central government's imposition of taxes is to be blamed for the steep increase in prices.
