After the recent increase in the prices of LPG cylinders, the discussion among the common people across the country has intensified. Meanwhile, the Central Government has expressed its views on this entire matter. The government claims that despite the huge rise in gas prices in the international market, Indian consumers are still getting cooking gas at much lower prices compared to many other countries of the world.

According to the current information, the price of 14.2 kg domestic gas cylinder in Delhi has been increased from Rs 913 to Rs 942. This increase has come at a time when gas prices are continuously skyrocketing in the international market. Let us tell you that earlier in the month of March also, the price of domestic gas cylinder was increased by Rs 60. In this way, within the last few months the total increase per cylinder has reached Rs 89.

Beneficiaries of Ujjwala scheme will continue to get relief

The government has continued to provide relief to the beneficiaries of Pradhan Mantri Ujjwala Yojana amid rising prices. To the poor families associated with the scheme, a subsidy amount of Rs 300 per cylinder will be transferred directly into their bank accounts. After this huge relief, these families will effectively have to pay only Rs 642 per cylinder for the first four refills of the year.

Why is the international market on fire?

The government says that this sharp increase in international gas prices has been recorded due to the ongoing conflict and regional tension in West Asia. It is noteworthy that India imports a large part of its gas needs from other countries. In such a situation, the price of LPG for India is directly linked to the global benchmark price decided by Saudi Arabia.

If we look at the government data, the global standard price of gas in February was around US $ 543 per tonne, which has now increased to US $ 790 per tonne. That is, within a few months it has registered a huge increase of about 46 percent in the international market. The main reason for this is the obstruction in gas supply through the Strait of Hormuz and the geopolitical tension in West Asia.

Actual cost is more than ₹ 1600, but they are charging less from the public

The government shared a very shocking figure and said that in the current circumstances, the actual cost of a domestic gas cylinder is more than Rs 1600. Despite this, without putting any burden on the common consumers of the country, only Rs 942 is being taken from them. The government claims that the huge difference between this actual cost and the selling price is being borne by the public sector oil companies themselves and through government subsidies.

Oil companies’ losses and government’s big package

By the end of the last financial year, the total loss on sale of domestic gas had reached a whopping level of around Rs 60 thousand crore, which was Rs 41,338 crore just a year before. The Union Cabinet has taken a major step to reduce this huge financial burden and continue providing relief to the general public. The government has approved providing financial assistance of Rs 30 thousand crore to public sector oil marketing companies (OMCs).

There was no gas shortage in India even during the crisis.

The government has also proudly said that during this major crisis in West Asia, India has been among the few countries in the world where the supply of gas and petroleum products was not interrupted even for a day. For this, domestic production within the country was rapidly increased and the supply chain has been strengthened by starting the import of gas from new sources in the world.

Under this strategy, India has now significantly increased the import of gas from countries like America, Canada and Algeria. Moreover, domestic production within the country has been increased by more than 60 percent so that no shortage is faced in future. The government clearly says that this slight increase in domestic gas prices is actually an attempt to strike a balance between protecting consumers from the full impact of the global recession and maintaining uninterrupted supply of gas across the country. At present, the government and oil companies are keeping a close eye on the conditions in the international market.