Cooking Gas cylinder prices in India have been a topic of concern for many households as they continue to increase every year. According to the data provided by the Indian Oil Corporation, a 14.2 kg cylinder for residential purposes currently costs INR 1,102.50. The LPG cylinder market is expected to grow at a CAGR of 4.9% from 2021 to 2027. On domestic LPG cylinders, the State Government levies a tax of 55%, whereas the Central Government’s tax is just 5%.
The table below shows the year-wise price of a non-subsidized 14.2 kg gas cylinder in different cities of India.
Price of Non-Subsidized 14.2 Kg Gas Cylinder
The above data shows that the prices of non-subsidized gas cylinders have been increasing every year, with some cities witnessing a sharp increase in 2022.
|
Year |
Delhi |
Kolkata |
Mumbai |
Chennai |
|
2018 |
741.00 |
761.00 |
713.00 |
750.50 |
|
2019 |
689.00 |
714.00 |
660.00 |
704.50 |
|
2020 |
649.75 |
674.38 |
625.38 |
663.50 |
|
2021 |
754.83 |
781.17 |
728.50 |
770.50 |
|
2022 |
1,001.40 |
1,027.40 |
1,001.40 |
1,017.40 |
|
2023 |
1,103.00 |
1,129.00 |
1,102.50 |
1,118.50 |
The above data shows that the prices of non-subsidized gas cylinders have been increasing every year, with some cities witnessing a sharp increase in 2022.
The main reasons for the increasing gas prices in India are discussed below:
1. International crude oil prices: India imports a significant amount of crude oil to meet its energy requirements, and any increase in the international prices of crude oil leads to a rise in gas prices in India.
2. Domestic taxes and duties: The central and state governments in India levy various taxes and duties on gasoline and diesel, which can significantly impact the final retail price. For instance, if the government increases the excise duty or value-added tax (VAT) on gas, it can lead to higher prices.
3. Depreciation of the Indian rupee: Crude oil prices are denominated in US dollars, and any depreciation in the value of the Indian rupee against the dollar can increase the price of crude oil, which, in turn, can lead to higher gas prices.
4. The impact of the increasing gas prices can be felt by households across the
Demand and supply: Any fluctuation in the demand and supply of natural gas can also impact its prices. If the demand for gas increases and the supply remains the same, the prices will go up.
5. Transportation costs: The cost of transporting gas from refineries to gas stations can also impact the final retail price. If the transportation costs increase due to higher fuel prices, it can lead to higher gas prices.
6. COVID-19 pandemic: The COVID-19 pandemic has disrupted the global supply chain and caused volatility in the prices of crude oil and natural gas. As India heavily relies on imports for its gas requirements, any disruption in the global supply chain can lead to a rise in gas prices.
Currently, the price of a non-subsidized 14.2 kg gas cylinder in Delhi is Rs.1,103.00, which is a significant increase from the prices in 2017. The following table shows the prices of a 14.2 kg cylinder and a 5 kg cylinder from 2017 to 2023.
1. International crude oil prices: India imports a significant amount of crude oil to meet its energy requirements, and any increase in the international prices of crude oil leads to a rise in gas prices in India.
2. Domestic taxes and duties: The central and state governments in India levy various taxes and duties on gasoline and diesel, which can significantly impact the final retail price. For instance, if the government increases the excise duty or value-added tax (VAT) on gas, it can lead to higher prices.
3. Depreciation of the Indian rupee: Crude oil prices are denominated in US dollars, and any depreciation in the value of the Indian rupee against the dollar can increase the price of crude oil, which, in turn, can lead to higher gas prices.
4. The impact of the increasing gas prices can be felt by households across the
Demand and supply: Any fluctuation in the demand and supply of natural gas can also impact its prices. If the demand for gas increases and the supply remains the same, the prices will go up.
5. Transportation costs: The cost of transporting gas from refineries to gas stations can also impact the final retail price. If the transportation costs increase due to higher fuel prices, it can lead to higher gas prices.
6. COVID-19 pandemic: The COVID-19 pandemic has disrupted the global supply chain and caused volatility in the prices of crude oil and natural gas. As India heavily relies on imports for its gas requirements, any disruption in the global supply chain can lead to a rise in gas prices.
Currently, the price of a non-subsidized 14.2 kg gas cylinder in Delhi is Rs.1,103.00, which is a significant increase from the prices in 2017. The following table shows the prices of a 14.2 kg cylinder and a 5 kg cylinder from 2017 to 2023.
|
Year |
14.2 kg Cylinder Price (in INR) |
5 kg Cylinder Price (in INR) |
|
2017 |
586.00 |
256.00 |
|
2018 |
880.00 |
376.00 |
|
2019 |
594.00 |
263.00 |
|
2020 |
714.00 |
311.50 |
|
2021 |
884.50 |
356.00 |
|
2022 |
999.50 |
405.00 |
|
2023 |
1,102.50 |
440.50 |
In India Gas prices major component is Taxes imposed by Central and State government. Below we have summarized Indian states and union territories in which highest and lowest indirect taxes imposed on different petroleum products. Petroleum prices affects gas prices as petroleum products used to produce gas.
Highest
Here are the states/UTs with the highest tax rates for each fuel type:
Petrol:
Andhra Pradesh: 31% VAT + Rs.4/litre VAT+Rs.1/litre Road Development Cess and Vat thereon
Rajasthan: 36% VAT + Rs. 1.5/litre cess
Madhya Pradesh: 29 % VAT + Rs.2.5/litre VAT+1%Cess
Diesel:
Rajasthan: 26% VAT + Rs. 1.75/liter cess
Andhra Pradesh: 22.25% VAT + Rs.4/liter VAT+Rs.1/liter Road Development Cess and Vat thereon
Punjab: Rs.2050/KL (cess)+ Rs.0.10 per Liter (Urban Transport Fund) + 0.25 per Liter (Special Infrastructure Development Fee)+14.75% VAT plus 10% additional tax or Rs.13.40/L whichever is higher
Superior Kerosene Oil (SKO):
Andhra Pradesh: 5.00% GST
Tamil Nadu: 34% VAT + Rs. 1.50/L Cess
Kerala: 26.40% VAT + Rs.1.5/L additional VAT + 1% Cess
Tamil Nadu: 34% VAT + Rs. 1.50/L Cess
Kerala: 26.40% VAT + Rs.1.5/L additional VAT + 1% Cess
Domestic LPG:
Rajasthan: 5% VAT on price per cylinder
Tamil Nadu: 5% VAT on price per cylinder
Uttar Pradesh: 5% VAT on price per cylinder
Lowest
The following states have the lowest tax rates for the mentioned fuels as per the details provided:
Andaman & Nicobar Islands: 1% for petrol, 1% for diesel, 5% for SKO (PDS), and 5% for domestic LPG.
Dadra and Nagar Haveli and Daman and Diu: 12.75% for petrol and 13.50% for diesel.
Lakshadweep: 10% for petrol and 10% for diesel.
Mizoram: 16.36% for petrol and 5.23% for diesel.
Alternative to Gas:
Below are several alternatives to gas for cooking which can Indian household may opt including:
1. Electric cooktops: These are becoming increasingly popular in India and are powered by electricity. They come in a variety of styles, including coil, smoothtop, and induction.
2. Induction cooktops: Induction cooktops are also gaining popularity in India due to their energy efficiency and quick heating. They require specific types of cookware that are compatible with induction cooking.
3. Biomass cookstoves: These stoves use biomass fuels such as wood, charcoal, and agricultural waste to cook food. They are commonly used in rural areas of India where access to LPG gas is limited.
4. Solar cookers: Solar cookers are a great option for areas with ample sunlight. They use solar energy to cook food, making them an environmentally-friendly and cost-effective option.
5. Electric rice cookers: Rice is a staple food in India, and electric rice cookers are a popular alternative to gas stoves. They are simple to use and can cook rice to perfection with minimal effort.
It's important to choose the right alternative to gas based on your cooking needs, budget, and the availability of fuel in your area. In India, government subsidies are available for some types of alternative cooking fuels to encourage their use, so it's worth exploring all options before making a decision.
3. Biomass cookstoves: These stoves use biomass fuels such as wood, charcoal, and agricultural waste to cook food. They are commonly used in rural areas of India where access to LPG gas is limited.
4. Solar cookers: Solar cookers are a great option for areas with ample sunlight. They use solar energy to cook food, making them an environmentally-friendly and cost-effective option.
5. Electric rice cookers: Rice is a staple food in India, and electric rice cookers are a popular alternative to gas stoves. They are simple to use and can cook rice to perfection with minimal effort.
It's important to choose the right alternative to gas based on your cooking needs, budget, and the availability of fuel in your area. In India, government subsidies are available for some types of alternative cooking fuels to encourage their use, so it's worth exploring all options before making a decision.
Disclaimer: The information provided here is based only on beliefs and facts. It is important to know that we does not endorse or verify any information. Before applying any information or belief, seek advice from a relevant expert. Impactpeople: Insightful Stories, Impactful Change | |
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