Government Raises LPG Prices Across the Board

The government has announced an increase in the price of household LPG, affecting all categories including subsidized refills under the ‘Ujjwala’ scheme. From Tuesday, Ujjwala households in Delhi will pay Rs 553 per cylinder, up from Rs 503, while general category consumers will see prices rise to Rs 853.

Special Additional Excise Duty Increased

A special additional excise duty (SAED) on petrol and diesel has been increased by Rs 2 per litre. This move is expected to yield about Rs 32,000 crore for the exchequer, offsetting the impact of falling oil prices.

Impact on Oil Marketing Companies

Oil minister Hardeep Singh Puri defended the hike, citing a Rs 41,338 crore deficit in oil marketing companies due to rising benchmark rates. The increased prices are anticipated to generate Rs 5,000-7,000 crore to cover under-recoveries on LPG.

Future Outlook

Despite the hike, Puri hinted at possible relief if crude prices remain low. The government’s strategy aims to balance fiscal needs with consumer affordability, amidst global oil price fluctuations.