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Starting Tuesday, LPG cylinder prices for both Ujjwala and non-Ujjwala consumers will go up by Rs 50. Minister Hardeep Puri announced the hike on Monday, which will affect PMUY beneficiaries and other users. For those under the Pradhan Mantri Ujjwala Yojana (PMUY), the price will increase from Rs 500 to Rs 550 per cylinder. Non-PMUY consumers will see a rise from Rs 803 to Rs 853. The minister noted that this hike will be reviewed every 2-3 weeks. The government says it will keep an eye on market conditions before making any further changes.

LPG Price Hike Details

According to the minister, the price of LPG cylinders will increase by Rs 50. For PMUY beneficiaries, the price will go up from Rs 500 to Rs 550 per cylinder. For others, the price will rise from Rs 803 to Rs 853 per cylinder. The minister clarified that this decision is subject to review and will be reassessed every 2-3 weeks.

Excise Duty on Petrol and Diesel

In addition to the LPG price hike, the government has also imposed additional excise duties on petrol and diesel to offset losses faced by oil marketing companies (OMCs). Finance Ministry has introduced a Rs 2 excise duty on petrol and diesel, which will be collected into the general fund rather than being passed on to consumers.

Excise Duty on Fuel to Rise

The government also raised the excise duties on both petrol and diesel, effective Tuesday. Currently, the excise duty on petrol stands at Rs 19.90 per litre. From Tuesday, it will increase to Rs 21.90 per litre. Similarly, the excise duty on diesel, which is currently Rs 15.80 per litre, will rise to Rs 17.80 per litre.

Retail Prices of Petrol and Diesel to Stay the Same

Despite the increase in excise duties, oil marketing companies have assured the Petroleum Ministry that retail prices of petrol and diesel will remain unchanged. This means that consumers will not see a direct increase in the prices they pay at the pump, even though the excise duty hike has been implemented.

Crude Oil Prices and Impact on Margins

Crude oil prices have softened recently, dipping from over USD 70 per barrel to around USD 63 per barrel. This drop in prices has raised margins for oil marketing companies, potentially influencing the government’s decision to hike excise duties on petrol and diesel. Despite the excise duty hike, OMCs may benefit from these improved margins as the government seeks to compensate them for their earlier losses.

(With Inputs From ANI)