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New LPG connections to cost 50% more ; gas regulators become dearer too

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Oil marketing companies have increased the security deposit on cylinders for new connections. With an increase of Rs 750 per cylinder, customers will now have to pay Rs 2200 per connection.

This is an increase of 52% over previous prices. Earlier the security deposit per connection was Rs 1450 per connection.

According to IOCL, the security deposit for a 14.2-Kg LPG cylinder will be Rs 2200 instead of Rs 1,450 earlier. The new rates will be applicable from Thursday.

For a 5-Kg cylinder, the deposit has been increased to Rs 1,150 from Rs 800 earlier. Even gas regulator prices were increased. Consumers will now pay Rs 250 for regulators instead of Rs 150 earlier.

It is to be noted that the government has restricted subsidies on cooking gas and LPG to the 9 crore women beneficiaries of the Pradhan Mantri Ujjwala Yojana. Other consumers and households will have to pay market prices.

Oil secretary Pankaj Jain at a press briefing said the only subsidy has been paid on cooking gas since June 20 barring that mentioned by Finance Minister Nirmala Sitharaman on May 21.

“There was no subsidy for LPG users since the early days of Covid. Since then the only subsidy is one which had been introduced now for Ujjawala beneficiaries,” Jain said.

The Finance Minister Sitharaman said that the beneficiaries of the Ujjwala scheme will get Rs 200 per cylinder for 12 cylinders per year when she announced a reduction in excise duty on petrol by Rs 8 per litre and on diesel by Rs 6 per litre.

The move will have a revenue implication of around Rs 6100 crore a year, the FM added.

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