By Admin 
LPG price hike: Domestic LPG prices have increased across India due to increasing tension in the Middle East due to the war between Iran and Israel. The price of 14.2 kg domestic LPG cylinder has increased by Rs 60, while commercial cylinders have become costlier by about Rs 115. This change is going to be implemented from March 7. According to Indian Oil Corporation (IOC), the price of non-subsidized domestic LPG cylinder in Delhi has increased from Rs 853 to Rs 913.
Prices increased in other cities also
This effect of increase in prices is being seen in other big cities also. In Mumbai the price has increased to Rs 912.50, while in Kolkata its price is now around Rs 939. Similarly, the changed price in Chennai is Rs 928.50 per cylinder.
Why did prices increase suddenly?
A major reason for the increase in LPG prices is the tension in the Middle East. Due to the war between Iran and Israel, the crisis of impact on the supply chain of crude oil and gas in the global market is deepening. Iran’s decision to close the Strait of Hormuz now seems to be having a heavy impact on the world because about 20-25 percent of the world’s oil and gas passes through this route. Blocking this route will stop oil exports from big countries like Saudi Arabia to UAE and Kuwait.
Now if the supply decreases, countries will compete to store maximum amount of oil. This will obviously increase demand. In such a situation, it is natural for the price to jump beyond $85-90. As we know that India imports up to 85 percent of its crude oil requirement from other countries. Now crude oil will be expensive, so government companies will increase the prices domestically to avoid losses, like LPG prices have been increased from today. Due to increase in the price of crude oil, the price of diesel will also increase, due to which the cost of transportation of goods will increase. In such a situation, everything from vegetables to fruits will become expensive.
increasing pressure on rupee
When crude prices rise, India has to pay more in dollars. Due to this the demand for dollars increases and the rupee becomes weak. Weak rupee makes imports more expensive. Now imports will become expensive, so the prices of things will also increase. Let us tell you that due to increasing demand for gas across the world and decreasing supply, companies like ‘Saudi Aramco’ have changed their rates, the effect of which is visible on India.
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