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LPG price hiked by Rs 2.94 per cylinder

News Nation Bureau | Edited By : Srishty Choudhury | Updated on: 01 Nov 2018, 09:08:15 AM
LPG price raised by Rs 2.94 per cylinder

New Delhi:

The price of subsidised cooking gas (LPG) was increased by Rs 2.94 per cylinder on Wednesday due to a tax impact on the change in base price. November 1 onwards, a 14.2-kg subsidised LPG cylinder would cost Rs 505.34 as against Rs 502.40, Indian Oil Corp (IOC) said in a statement. The non-subsidised or market price LPG rates have gone up by Rs 60 per cylinder to Rs 880.

This is the sixth straight monthly increase in rates since June. In all rates have gone up by Rs 14.13 per cylinder since then. All LPG consumers have to buy the fuel at market price. The government, however, subsidises 12 cylinders of 14.2-kg each per households in a year by providing the subsidy amount directly in bank accounts of users.

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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 subsidise a part of the price but tax will have to be paid at market rates. This has led to an increase in price.

“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,” the statement said.

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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.

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First Published : 01 Nov 2018, 08:41:58 AM