New Delhi: Subsidised cooking gas price was hiked by Rs 2.71 per cylinder on Sunday to Rs 502.4 per cylinder as a result of tax impact of base price rising due to spurt in international rates and fall in rupee.
Subsidised LPG with effect from midnight Sunday will cost Rs 493.55 in Delhi, a statement issued by Indian Oil Corp (IOC) said.
The actual impact on subsidised domestic LPG customers is only Rs 2.89 per cylinder, which is mainly due to GST on the above, IOC added.
The subsidy transfer in customers’ bank account has been increased to Rs 376.60 per cylinder in October 2018 as against Rs 320.49 per cylinder in September 2018.
The price of non-subsidised LPG at Delhi will increase by Rs 59 per cylinder in October 2018 mainly due to change in international price and foreign exchange fluctuations, Indian Oil Corporation (IOC) said in a statement.
Oil firms revise LPG price on 1st of every month based on average benchmark rate and foreign exchange rate in the previous month.
“The increase is mainly on account of GST on revised price of Domestic Non-Subsidised LPG,” the statement said.
As a result of higher global rates, the price of non-subsidised LPG at Delhi will increase by Rs 55.50 per cylinder.
“The balance Rs.52.79 (Rs.55.50 minus Rs.2.71) is being compensated to the customer by increase in subsidy transfer to their bank account. Accordingly, the subsidy transfer in customers bank account has been increased to Rs 257.74 per cylinder in July 2018 as against Rs 204.95 per cylinder in June 2018. Thus the domestic LPG customer is protected against the increase in international prices of LPG,” the statement said.
Consumers buy non-subsidised or market price LPG after exhausting their quota of 12 subsidised cylinders of 14.2-kg each.