Statsguru: LPG price cut may reduce retail inflation rate by around 30 bps

Consumption of LPG has accordingly been going up over the years. Production was close to consumption in the early 2000s. This has since changed with an increased shift towards clean cooking fuel

The government’s decision to cut gas prices by about a fifth has gone some way in making it more accessible.

It recently reduced prices by Rs 200. The 14.2 kilogram liquefied petroleum gas (LPG) cylinder is now priced at Rs 903 in Delhi. The move is expected to reduce the retail inflation rate by around 30 basis points. Gas prices are now the lowest since October 2021. Prices were lower than Rs 700 in 2020 (chart 1).


 

Higher prices affect a large segment of India’s population. The number of people using LPG cylinders, however, has risen to over