LPG Price Increased For Sixth Consecutive Month By Rs. 2.94/Cylinder

LPG Price Increased For Sixth Consecutive Month By Rs. 2.94/Cylinder

The price of subsidized LPG or cooking gas has been increased by Rs. 2.94 for a cylinder as a result of the impact of tax on changed base price. This is the sixth consecutive increase on a month-on-month basis since the month of June and till now rates on a LPG cylinder have gone higher by Rs. 14.13 per cylinder.

LPG Price Increased For Sixth Consecutive Month By Rs. 2.94/Cylinder

So, a 14.2 kg subsidized LPG cylinder from today will cost Rs. 505.34 in comparison to its price of Rs. 502.4 earlier.

The government offers subsidy on 12 LPG cylinders of 14.2 kg per household in a year and the subsidy amount is directly credited into the linked bank account of LPG consumers. And beyond this number, LPG cylinders have to be bought at market rates.

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It is to be noted that subsidy amount varies month on month as per the variation in the foreign exchange rate and average international benchmark LPG price. Further, when international rates climb higher, government offers a higher subsidy amount. Nonetheless, as per taxation laws, GST on LPG is to be calculated on the market price of the fuel.

The non-subsidised LPG cylinder will be available for Rs.880 after price hike of Rs. 60 for a cylinder.

The statement added, “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”.

For the November month, the subsidy amount credited into the bank account of LPG consumer has increased to Rs. 433.66 in comparison to Rs. 376.60 in October.

Further the statement said, “thus the domestic subsidised LPG customer is protected against the increase in prices of LPG”.

 

Source:- goodreturns

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