The start of November brought unwelcome news for households across India, as the price of Liquefied Petroleum Gas (LPG) cylinders increased by Rs. 62, leaving many families struggling to manage already-stretched budgets. This marks the fourth LPG price hike in just six months, intensifying financial pressures on everyday consumers, particularly those in lower-income groups and small business owners, who are struggling to cope with rising inflation.
Many citizens have voiced their frustration at the frequency and timing of these price hikes, questioning whether the government is doing enough to protect vulnerable groups from inflation. For Shyam Kumar, a daily wage worker, the increase is yet another blow following recent flooding in his area. “The floods destroyed so much, and we’re just getting back on our feet. With this increase, I have to cut down on essentials just to afford cooking gas,” he shared, highlighting the difficult choices many low-income families are facing.
Similarly, Meena Devi, a street vendor, expressed her distress over the impact on her small business. “Every rupee matters. This hike means we’ll have to cut back on necessities,” she said. Small business owners are also concerned, as rising fuel costs affect both their operations and supply chains. Many worry that the continued rise in costs will harm not only their profitability but also their ability to sustain their businesses.
The latest hike follows a surge in LPG demand across the country. According to a report from IANS, India’s LPG consumption rose by 7.5% in October 2024 compared to the same month last year, reaching 2.82 million tonnes. This increase reflects a wider trend of rising fuel consumption in India’s growing economy. Public sector oil companies reported that petrol sales went up by 7.3%, and aviation turbine fuel (ATF) demand grew by 2.5% year-on-year in October, highlighting increased fuel demand driven by a growing middle class, a rise in air travel, and expanded car and two-wheeler sales.
Despite the rise in LPG and petrol demand, diesel sales saw a decline of 3.3% due to the extended monsoon season, which delayed the agricultural sowing period and reduced diesel use in farming. Nonetheless, the overall rise in fuel consumption reflects India’s ongoing economic growth, with the festive season further boosting demand. October’s rise in petrol sales, which reached 3.1 million tonnes, is attributed to increasing urban and rural purchases of cars, SUVs, and two-wheelers.
Alongside this, the demand for jet fuel has increased, driven by higher air travel volumes among the middle class. In October, jet fuel consumption surged to 647,700 tonnes, with domestic airlines transporting 1.30 crore passengers in September—an increase of 6.38% from the previous year. This growth in air travel is indicative of the expanding middle class in India, which is experiencing rising disposable incomes amid a growing economy.
Meanwhile, LPG consumption has been supported by initiatives such as the Pradhan Mantri Ujjwala Yojana (PMUY), which aims to provide deposit-free LPG connections to women from economically disadvantaged households. As of August 2024, the government has distributed over 10.33 crore connections under PMUY, with additional connections being issued under the Ujjwala 2.0 program. The Ministry of Petroleum and Natural Gas reported that PMUY beneficiaries have shown a higher per capita consumption, with an average of 3.95 refills per beneficiary during the fiscal year 2023-24.
In an effort to encourage LPG use over traditional cooking fuels, the government has also initiated awareness programs, including LPG Panchayats and safety camps, to highlight the benefits of LPG. However, despite these measures, the rising LPG prices are making it increasingly difficult for many households to afford refills, prompting public calls for more intervention to manage price stability.
The latest price hike has added to the growing financial strain on households, with consumers calling for additional support from the government to cushion the impact of inflation. As inflation and rising costs continue to affect household budgets, many hope that relief measures will be considered to ease the financial pressure on ordinary citizens.
