On Saturday, the price of household LPG cylinders was increased by Rs 50. The 14.2 kilogram home cylinder will now cost Rs 999.50 per cylinder as of today, thanks to the recent adjustment.
The price of a 19-kilogram commercial LPG cylinder was raised by Rs 102 to Rs 2,355.5 earlier this month. A 5-kg LPG commercial cylinder’s price was also raised to Rs 655. Domestic LPG prices have increased by approximately Rs 200 in the last year.
This comes as retail inflation, as measured by the Consumer Price Index (Combined), is expected to have climbed to 7.7% in April, owing to higher food costs and the full pass-through effect of gasoline price hikes, according to experts.
Geopolitical concerns, a heat wave that has impacted food prices, particularly wheat, and an overall increase in transportation expenses owing to fuel price hikes have all contributed to the spike in inflation, which reached a 17-month high of 6.95 percent in March.
Economists estimate inflation to be greater than 6% for the whole fiscal year, which is over the top range of the RBI’s medium-term inflation objective. The RBI raised the repo rate by 40 basis points on Wednesday, citing concerns about the sensitivity of domestic food prices in India’s political economy. According to the RBI, high frequency price indicators for April imply that food price pressures would endure. Simultaneously, the immediate impact of rises in domestic petroleum product pump prices, which began in the second week of March, is filtering into core inflation figures and is projected to have picked up in April.
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