Non-subsidised LPG cylinder rates hiked sharply across metros

Representative

The price of non-subsidised liquefied petroleum gas (LPG) was spiked on Wednesday.

This is the steepest hike in rates since January 2014 when prices had gone up by Rs 220 per cylinder to Rs 1,241.

Public sector oil firms today said, "LPG price has been increased to Rs 858.50 per 14.2 kg cylinder from Rs 714".

Domestic LPG users, who are entitled to buy 12 bottles of 14.2-kg each at subsidised rates in a year, will get more subsidy.

This the sixth time the price of non-subsidised cooking gas has been increased in the recent past, with the cumulative price rise since August at almost Rs 300. In Chennai on the other hand, the price is at Rs 881.00, which is an increase of Rs 147.

Usually, LPG prices are revised on the first of every month, however, amid Delhi elections, the process seems to have been deliberately delayed.

This was the sixth straight hike in the prices of cooking gas. With every increase in global rates, Goods and Services Tax (GST) on LPG is calculated not on the base price but market price changes. The government subsidises 12 cylinders of 14.2-kg each per household in a year by providing subsidy amount directly in the bank accounts of users.

LPG prices in India depend on key global factors such as worldwide oil and gas prices and the rate of the Indian rupee against the U.S. dollar.

The government provides higher subsidy to subsidised customers via the direct benefit transfer scheme but the non-subsidised category has no such protection.

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