LPG price up Rs 50; excise duty hiked on petrol, diesel

The domestic cooking gas (LPG) price on Monday was hiked by a steep Rs 50 per cylinder across India and CNG by Re 1 per kg, while the government raised taxes on petrol and diesel to shore up its revenues.

This tax hike aims to generate Rs 32,000 crore annually, offsetting oil companies' LPG losses, though the timing of reimbursement remains uncertain. However, there will be no change in retail prices as the increase will be adjusted against the price cut that was warranted because of falling international oil prices.

"The increase in the cooking gas price will be for the Ujjawala — poor beneficiaries who got LPG connection free of cost — and general users. It will be effective from April 8 and has been necessitated due to the rise in input cost," said Petroleum Minister Hardeep Singh Puri.

The cooking gas for Ujjawala users will now cost Rs 553 per 14.2-kg cylinder from the current Rs 503 in the national capital. For the general users, it will now cost Rs 853.

The rates, which vary from state to state depending on local taxes, were last revised in March last year when these were cut by Rs 100.

Also, CNG prices were hiked by Re 1 per kg in the national capital and adjoining cities after the government last week raised input natural gas prices by almost 4 per cent.