LPG price hike: Co's reap huge gains; and people pay the price
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Kochi: The hike in LPG (Liquefied Petroleum Gas) price, close on the heels of that of petrol and diesel prices, is breaking the back of ordinary consumers. The hike, inflicted on the public on the pretext of rise in international oil prices, is fetching oil companies huge profits.
Even though prices rise unbearably high, consumers continue to buy LPG for want of suitable alternatives, and as they are used to a life style with gas as the main cooking fuel.
A secondary benefeciary of the LPG price rise are governments who derive a proportionate increase in tax revenue.
On Wednesady an LPG cylilner of 14.2 kg with subsidy in Kochi had an increase of Rs 2.94 while the commercial cyliner of 19 kg, which does not give subsidy, rose by Rs 60. There is slight difference in price among different parts of the state depending on transport cost.
Over the last five months, domestic cylinders have had an increase of Rs 14.13. In September, consumption of domestic cylinders had registered an increase of 6.4 %, as per Planning and Analysis Cell of Ministry of Petroleum and Natural Gas.
Among domestic consumers of LPG, 28.6 % are from south Indian states including Kerala. In September, 20.57,100 meterc tons of LPG was sold. In the first quarter of current fiiancial year (2018-19) the Central Government collected a net tax revenue of RS 2,773 crore. Out of this, 51 crore is from Kerala.
During last financial year, the total revenue was Rs 6,721 of which Kerala's contribution was 178 crore.
When the turnover value increases with higher prices, banks also stand to gain since crores of rupees by way of subsidy pass through their accounts.
