Jolt before Diwali! LPG price hiked by Rs 2.94 for subsidised cylinder and Rs 60 non-subsidised cylinder

Jolt before Diwali! LPG price hiked by Rs 2.94 for subsidised cylinder and Rs 60 non-subsidised cylinder

The non-subsidised or market price LPG rates have also gone up by Rs 60 per cylinder to Rs 880.

The price of subsidised cooking gas LPG has been hiked by Rs 2.94 per cylinder due to the tax impact on the change in base price. For consumers, a 14.2-kg domestic LPG cylinder will cost Rs 505.34 from midnight tonight against Rs 502.40 now.

The non-subsidised or market price LPG rates have also gone up by Rs 60 per cylinder to Rs 880.

This is the sixth straight monthly increase in rates since June this year. The rates have gone up by Rs 14.13 per cylinder since then. The government provides subsidy on 12 cylinders per household in a year by crediting the subsidy amount directly in bank accounts of the consumers. Other LPG consumers have to buy the fuel at non-subsidised rates.

According to news agency PTI, the subsidy amount varies every month, depending on the changes in the average international benchmark LPG rate and foreign exchange rate. When international rates increase, the government provides a higher subsidy. As per tax rules, the GST on LPG has to be calculated at the market rate of the fuel. Although the government may choose to subsidise a part of the price, the tax amount will have to be paid at market rates. This has led to an increase in the price of LPG cylinders.

“While the price of non-subsidised LPG at Delhi will increase by Rs 60 per cylinder in November 2018, mainly due to change in international price and foreign exchange fluctuations, the actual impact on subsidised domestic LPG customers is only Rs 2.94 per cylinder, which is mainly due to GST,” Indian Oil Corp (IOC) said in a statement.

The domestic subsidised LPG customer is protected against the increase in prices of LPG. The subsidy transfer in customers’ bank account has been increased to Rs 433.66 per cylinder in November 2018 as against Rs 376.60 per cylinder in October 2018, PTI reported.

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