LPG Price in India is determined by the state-run oil companies and is revised on a monthly basis. Almost all the household in India has an LPG connection and it is mainly used for cooking purpose. An increase in LPG prices will affect the common man in general as they have to bear the brunt of the rising fuel prices in the current market scenario. The best part of it is the government of India is currently providing subsidy on the sale of domestic LPG cylinders to the consumers.
The subsidy amount is directly credited to the individual’s bank account after the purchase of the cylinder. The subsidy amount varies every month and is dependent on the changes in the average international benchmark LPG prices added with the foreign exchange rate. The price of a 14.2 kg LPG cylinder (non-subsidised) in Delhi has risen to Rs 858.50 from Rs 714 on January 1; the new LPG cylinder price in Mumbai stands at Rs 829.5 from Rs 684.50 earlier
State-owned marketing companies have increased the prices of non-subsidised liquefied petroleum gas (LPG) or cooking gas cylinders by up to Rs 147 per cylinder from today. This is the sixth straight hike in LPG cylinder prices in the past few months. The prices were last increased by over Rs 19 on January 1. Since August, the companies are hiking LPG prices every month, thereby burning a hole in common man’s pocket.
Here’s the list of revised LPG prices across the four metro cities
- Delhi: Rs 858.5 (Rs 144 hike)
- Kolkata: Rs 896 (Rs 149 hike)
- Mumbai: Rs 829.5 (Rs 145.5 hike)
- Chennai: Rs 881 (Rs 147 hike)
The central government provides 12 cylinders per year on subsidised rates to each household. The tax on LPG changes every month, depending on the fluctuation in the average international benchmark LPG rate and foreign exchange rate.
With every increase in international rates, Goods and Services Tax (GST) on LPG is calculated not on the base price but market price changes.
The allocation for LPG subsidy has been increased to ₹37,256.21 crores for the next fiscal from the revised estimate of ₹34,085.86 crores for the current year.
For the current year, ₹38,568.86 crore fund has been allocated in the revised estimate as fuel subsidy.
But the allocation for kerosene subsidy has been reduced to ₹3,659 crores for the next year from the revised estimate of ₹4,483 crores for the current year.
