After fuel price hike, billions of Indian consumers may forced upon to buy cooking gas on an improved rate as high as Rs 100 per cylinder.
According to sources, country's oil ministry is planning to raise the LPG prices by between Rs 50 to Rs 100 citing huge hikes, by 66 percent, in global prices.
However a decision in this regard is unlikely this year, analysts said.
International price of LPG has soared due to winter demand, and consequently the subsidy on every cylinder is set to jump to Rs 367 per refill from January 1, which is more than the retail price of Rs 345.35 in New Delhi.
The oil ministry will seek the approval of the empowered group of ministers (EGoM), which is also expected to consider higher diesel rates, when it meets on Wednesday.
India, the largest consumer of LPG in Southeast Asia, meets its domestic demand by importing about 3 million tonnes of cooking gas. T
he Petroleum Planning & Analysis Cell , an arm of the oil ministry, estimates domestic LPG demand at 14 million tonnes in 2010-11. The country s dependence on LPG imports is increasing due to a 5-8% annual growth in consumption.
State-run oil companies are selling cooking gas at Rs 345.35 per cylinder in New Delhi. Their losses on its sale, compared with international rates, will jump to about Rs 367 per cylinder from January 1 as the import price of LPG for the next month has soared, officials said.
State-run oil companies declined to provide rates at which they are importing LPG cargoes next month, terming it a commercial secret.
Global LPG price, which was less than $600 a tonne in August, has touched around $1,000 a tonne and is still rising, an expert at a state-owned oil firm said, requesting anonymity.
According to sources, country's oil ministry is planning to raise the LPG prices by between Rs 50 to Rs 100 citing huge hikes, by 66 percent, in global prices.
However a decision in this regard is unlikely this year, analysts said.
International price of LPG has soared due to winter demand, and consequently the subsidy on every cylinder is set to jump to Rs 367 per refill from January 1, which is more than the retail price of Rs 345.35 in New Delhi.
The oil ministry will seek the approval of the empowered group of ministers (EGoM), which is also expected to consider higher diesel rates, when it meets on Wednesday.
India, the largest consumer of LPG in Southeast Asia, meets its domestic demand by importing about 3 million tonnes of cooking gas. T
he Petroleum Planning & Analysis Cell , an arm of the oil ministry, estimates domestic LPG demand at 14 million tonnes in 2010-11. The country s dependence on LPG imports is increasing due to a 5-8% annual growth in consumption.
State-run oil companies are selling cooking gas at Rs 345.35 per cylinder in New Delhi. Their losses on its sale, compared with international rates, will jump to about Rs 367 per cylinder from January 1 as the import price of LPG for the next month has soared, officials said.
State-run oil companies declined to provide rates at which they are importing LPG cargoes next month, terming it a commercial secret.
Global LPG price, which was less than $600 a tonne in August, has touched around $1,000 a tonne and is still rising, an expert at a state-owned oil firm said, requesting anonymity.
