LPG cylinder price hiked for third month today. Check latest rates
NEW DELHI : For the third consecutive month in November, the price of liquefied petroleum gas (LPG) was today increased by around ?76 a cylinder today. According to the latest price list by Indian Oil, which retails Indane gas, a 14.2 kg non-subsidised price of LPG cylinder now costs ?681.50 in Delhi, ?706 in Kolkata, ?651 in Mumbai and ?696 in Chennai.
The new prices are effective from November 1 as LPG prices are revised on the first day of every month. Earlier in October, LPG price was hiked by ?15. September too had recorded a similar hike of ?15.50. This month, the hike was sharper.
Prices are now, however, below by around ?250 a cylinder if compared with the rates in last November when LPG cylinders were retailing at ?939 in Delhi.
State-run fuel retailers take into account the international benchmark rates of LPG while calculating the price of LPG cylinders in India. The exchange rate of US dollar and rupee is also taken into consideration.
All LPG consumers have to buy the fuel at market price. The government, however, subsidizes 12 cylinders of 14.2 kg each per households in a year by providing the subsidy amount directly in bank accounts of users under the direct benefit transfer scheme.
This subsidy amount varies from month to month depending on the changes in average international benchmark LPG rate and foreign exchange rate. When international rates move up, the government provides a higher subsidy. But as per tax rules, GST on LPG has to be calculated at the market rate of the fuel. The government may choose to subsidize a part of the price, but tax will have to be paid at market rates. This leads to an increase or decrease in the price of subsidised cylinders.
The Economic Times 01-11-19