Price of subsidized cooking gas LPG hiked by 2.94 rupees per cylinder

New Delhi, November 1: The price of subsidised cooking gas LPG has been hiked by 2.94 rupees per cylinder. Indian Oil Corp said in a statement that there is a marginal increase of 2.94 rupees per 14.2 kilograms LPG cylinder from 502.40 rupees in October to 505.34 rupees in November in Delhi for the month of November.

 

While the price of Non-Subsidised LPG at Delhi has increased by 60 rupees per cylinder from today mainly due to change in international price and foreign exchange fluctuations, the actual impact on subsidised domestic LPG customers is only 2.94 rupees per cylinder.

The subsidy transfer in customers’ bank account has been increased to 433.66 rupees per cylinder this month as against 376.60 rupees per cylinder last month.

"Thus the domestic subsidised LPG customer is protected against the increase in prices of LPG," it said.

As a result of higher global rates, the price of non-subsidised LPG in Delhi will increase by Rs 60 per cylinder. The balance Rs 57.06 (Rs 60 minus Rs 2.94) is being compensated to the customer by the increase in subsidy transfer to their bank account. Accordingly, the subsidy transfer in the customer's bank account has been increased to Rs 433.66 in November from Rs 376.60 per cylinder in October.

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.