LPG or Liquid Petroleum Gas is used as a cooking fuel in most households in India. The government of India deregulated the LPG sector in 2010, which means the prices of LPG cylinders are decided by the oil companies based on international crude oil prices. The government provides a subsidy on LPG cylinders for domestic use to benefit the economically weaker sections of society.
On April 1, 2023, the price of a 14.2 kg LPG cylinder in Delhi is Rs. 1129. In contrast, the price of the same cylinder in Assam is Rs. 1182. This means the price of an LPG cylinder in Assam is higher than that of Delhi.
The prices of LPG cylinders are revised every month by the oil companies based on the changes in international crude oil prices. The prices of LPG cylinders have been fluctuating over the past few years due to various factors such as crude oil prices, government policies, taxes, and subsidies.
In recent years, the government of India has been reducing the subsidy on LPG cylinders for domestic use gradually. As a result, the prices of LPG cylinders have been increasing every year. However, the government still provides a subsidy on LPG cylinders for domestic use, which helps to reduce the burden on households.
The price of an LPG cylinder in Delhi and Assam is determined by several factors such as transportation costs, taxes, and subsidies. The transportation cost of LPG cylinders is higher in remote areas compared to urban areas due to the lack of infrastructure. This is one of the reasons why the price of an LPG cylinder is higher in Assam compared to Delhi.
Taxes also play a crucial role in determining the price of an LPG cylinder. The central and state governments levy taxes on LPG cylinders, which contribute to the final price of the cylinder. The taxes on LPG cylinders are different in each state, which is why the price of an LPG cylinder varies from state to state.
The government of India has implemented several policies over the years to reduce the burden on households due to the high prices of LPG cylinders. One of the significant policies is the Pradhan Mantri Ujjwala Yojana, which aims to provide LPG connections to households below the poverty line. The scheme provides financial assistance to households to purchase LPG connections, which has helped to increase LPG penetration in rural areas.
In conclusion, the price of an LPG cylinder in Delhi and Assam on April 1, 2023, is different due to several factors such as transportation costs, taxes, and subsidies. The price of an LPG cylinder is determined by the oil companies based on international crude oil prices, which can fluctuate frequently. The government of India provides a subsidy on LPG cylinders for domestic use, which helps to reduce the burden on households. The government has also implemented several policies to increase LPG penetration in rural areas and reduce the burden on households.
