LPG Price Hiked by Rs 2.94 Per Cylinder, Here’s How Much You Have to Pay
People are already struggling with the price hike on various levels, now people also have to a pay more money on LPG. Indian Oil said Wednesday’s increase in LPG prices was “due to change in international price and foreign exchange fluctuations”. It also said that the actual impact on subsidised domestic LPG customers is mainly due to GST.
LPG or cooking gas prices were increased on Wednesday, marking the sixth monthly increase in a row since June. While the hike in subsidised LPG was to the tune of Rs. 2.94 per cylinder in Delhi, the increase in non-subsidised cooking gas was Rs. 60 per cylinder, Indian Oil Corporation said in a statement.
LPG consumers will pay Rs. 505.34 per cylinder at subsidised rates, and Rs. 939 per cylinder at non-subsidised rates. This is the sixth straight monthly increase in rates since June. In all rates have gone up by Rs 14.13 per subsidised cylinder since then.
LPG consumers have to buy the fuel at market price and the government will later transfer the subsidy amount to the bank account of the consumer. It may be noted that govt subsidises 12 cylinders of 14.2-kg each per households in a year.
Indian Oil said Wednesday’s increase in LPG prices was “due to change in international price and foreign exchange fluctuations”. It also said that the actual impact on subsidised domestic LPG customers is mainly due to GST.
LPG consumers have to buy the fuel at market price and the government will later transfer the subsidy amount to the bank account of the consumer. It may be noted that govt subsidises 12 cylinders of 14.2-kg each per households in a year. With the increase in LPG prices, govt’s subsidy outgo will also increase. Now the govt has to transfer Rs 433.66 per cylinder as subsidy in November as against Rs 376.40 per cylinder in October of this year.
The tax on LPG changes from month to month depending on the fluctuation in the average international benchmark LPG rate and the foreign exchange rate. With every increase in international rates, the Goods and Services Tax on LPG is calculated not on the base price but market price changes. With every hike, the government has been providing higher subsidy via the direct benefit transfer scheme to subsidised customers.
