LPG price hike inevitable due to global crisis: Union Minister Pralhad Joshi

Union Minister Pralhad Joshi said the Center also felt “very upset and upset” over the increase in gas cylinder prices but termed it “inevitable” given the current global situation.

Domestic cooking gas LPG price increased by ₹29 per cylinder; This marks the second increase in three months as state-owned fuel retailers continue to grapple with rising global energy costs.

Speaking to reporters here on Sunday, Joshi said, “We are also very upset and saddened by the increase in gas cylinder prices, but before criticizing, everyone needs to understand the situation in the world. The world is under very serious crises.”

“There is no transfer and LPG is available from a very limited number of sources,” said the Union Minister for Consumer Affairs, Food and Public Distribution and New and Renewable Energy.

The Minister said that the Government of India, under the leadership of Prime Minister Narendra Modi, aims to ensure that no inconvenience is caused to LPG and gasoline/diesel consumers and is trying to increase purchasing resources.

He added that the supplies were made from countries quite far away from India.

“Transportation costs are high, base cost is also high, insurance costs have also increased due to 40-45 days of transit. Therefore, we are equally worried for the common man, but at the same time, the price increase is inevitable,” he said.

This increase follows an increase of ₹60 per cylinder on March 7 after conflict in West Asia disrupted global energy supplies and increased international fuel prices.

State-run oil marketing companies were estimated to lose around ₹703 per cylinder of LPG sold before the latest revision.

The Union Government said Indian households “continue to pay among the lowest prices” for cooking gas globally despite a sharp rise in international PG prices triggered by disruptions due to the West Asian crisis that began on February 28 following the joint US and Israeli attack on Iran.

The government said in a statement that the cost of supplying domestic LPG cylinders has risen to over ₹1,600 following the rise in international prices following the outbreak of war in West Asia.

India’s LPG import costs are based on the Saudi Contract Price (CP), the fuel’s global benchmark. It was stated that the benchmark index has increased by approximately 46 percent since February after disruptions related to the Strait of Hormuz tightened the supply from the Gulf region.

Claiming that the Congress government in Karnataka is plagued with “corruption, nepotism and factionalism”, Mr Joshi addressed the issue by saying that “internal dissatisfaction” within the ruling party was evident.

He added that soon after Chief Minister DK Shivakumar assumed office, a Minister resigned and several other ministers also openly expressed their displeasure.

“The situation itself shows that all is not well within the government and the administration,” he added.