Indian state-controlled refiners have kept prices of non-subsidised LPG unchanged for February compared with January.
The price of a 14.2kg LPG cylinder is 694 rupees ($9.50) this month in Delhi, according to state-controlled refiner IOC. It is unclear if there will be a mid-month adjustment as in December. LPG prices are typically adjusted every month but refiners last year decided to change jet fuel values every two weeks instead.
India's government budget this week outlined plans to slash subsidies on LPG and kerosine by around 70pc from a year earlier for the April 2021-March 2022 fiscal year. The combined subsidy on LPG and kerosine has been cut to a budgeted Rs129.95bn from a budgeted Rs409.15bn over 2020-21.
The government has budgeted Rs125bn towards LPG subsidies for 2021-22. It expects to spend Rs255bn towards LPG subsidies in 2020-21, down by 31pc from its original budgeted amount in February 2020 following a slump in crude prices.
The subsidy on LPG was zero when non-subsidised LPG prices were Rs594 in September. Consumers receive a Rs28 subsidy for a refill now after non-subsidised rates were increased by Rs100. Delhi has stopped publishing subsidised LPG rates.
India also plans to widen access to LPG to another 10mn low-income and rural households under its state subsidy programme during 2021-22, the budget outlined.
India's LPG consumption is forecast by the oil ministry to rise by 5pc to 27.7mn t in 2020-21 from 26.3mn t a year earlier.
