Gasoline and diesel prices reduce LPG fuel demand in Odisha

Even though reductions in excise duties on gasoline and diesel give the common man some breathing room on the streets, the price of liquefied petroleum gas (LPG) cylinders still pinches the pockets of consumers.

The admi has yet to come to terms with the very fact that the prices of cooking fuel have increased by 300 rupees in the space of just one year. A bottle of domestic LPG cost Rs 620.50 in October 2020, but now the price has peaked to a high of Rs 926.

What seems to hurt the common man is that previously, even though they had bought gas cylinders at Rs 600-650, they were then credited with a grant of Rs 200 under the program. DBTL on their bank accounts. But when the price of a cylinder hovers around Rs 1000, the amount of subsidy credited has dropped to a measly Rs 13.95.

“Now we bought a cylinder at around Rs 1000 and there is no subsidy on it. Previously, even at lower prices, we took advantage of the subsidy which gave us the latitude to cook dishes as we choose. “Times have changed. We shudder at the arrival of guests now,” said Banajbasini Lenka, a housewife.

Another housewife claimed that she had switched to fuelwood for cooking fuel, instead of LPG.

Not only are housewives sweating because of soaring prices for LPG cylinders, hotel owners are also the recipients. Small hotel owners expressed concern over the increase of Rs 266 per 19kg commercial cylinder earlier this month.

The big consequence, they argue, is that since LPG is one of the main raw materials, we pass higher prices on to consumers by raising food prices. It goes both ways – the rising cost of food dishes deters customers, and at the same time, it affects the hotel and restaurant industry or let’s say the entire restaurant industry, one hotelier said.

“In order to stay in business, we have been forced to compromise with the quality of food due to the increase in prices. And the customers have to face some health issues due to such low food quality. We ask the government to reduce the price of LPG, ”urged Sushant Samal, a hotelier.

Meanwhile, the LPG Cylinder Distributors Association has also expressed concerns about the sharp increase in the cost of cylinders. People have reduced the number of recharges compared to previous days. Distributors in rural areas have lost hope in Pradhan Mantri Ujjwala Yojana (PMUY) and are withdrawing from the dealership, they said.

“Although the situation seems normal in urban areas as dealers have good purchasing capacity, dealers who depend on Ujjwala program beneficiaries in rural areas have lost hope,” said Biswanath Mukherji, president of the association. LPG distributors Odisha.

It was only recently that the Center reduced excise duties on fuels, and Odisha’s government also reduced its VAT on fuels. After that, the retail prices of gasoline and diesel fell by 5 to 10 rupees per liter. Car fuel prices in the capital of Odisha are now quoted at Rs 101.84 (gasoline) and Rs 91.65 (diesel).

In addition, the Modi government on Thursday rationalized import duties on edible oil and reduced the base duty on crude palm oil, crude soybean oil and crude sunflower oil by 2, 5% to zero to keep an eye on the rising prices of edible oils.

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