Non-subsidised LPG to cost Rs144.5 more per cylinder
12 February 2020
State-run oil marketing companies today sharply hiked the price of non-subsidised liquefied petroleum gas (LPG) by Rs144.5 per 14.2 kg cylinder, effective today. This is the sixth hike in LPG prices in as many months.
According to Indian Oil Corporation website, non-subsidised LPG cylinder is now priced at Rs858.5 in New Delhi, a sharp hike of Rs144.5 from its last revision on 1 January.
In Kolkata, LPG cylinder prices will go up by Rs149 to Rs896, in Mumbai by Rs145 to Rs829.5 and in Chennai by Rs147 to Rs881.
This is the steepest hike in rates since January 2014 when the price of a non-subsidised LPG cylinder had gone up by Rs220.
Fuel retailers revise prices of LPG cylinders every month. The price of LPG cylinders in India is dependent primarily on the international benchmark rate of LPG and the exchange rate of US dollar and rupee.
Fuel retailers sell LPG cylinders at the market price but the government subsidises 12 cylinders for each household per year by providing direct subsidy.
To insulate domestic users, the government almost doubled the subsidy it provides on the fuel to keep per cylinder outgo almost unchanged. The government subsidy payout to domestic users has been increased from Rs153.86 per cylinder to Rs291.48, reports citing industry officials said.
In Budget 2020, the government increased the allocation for providing subsidised fuel, especially LPG and kerosene, by 6% to ?40,915.21 crore for the next fiscal.
The allocation for LPG subsidy has been increased to Rs37,256.21 crore for the next fiscal from the revised estimate of Rs34,085.86 crore for the current year.
For the current year, Rs38,568.86 crore fund has been allocated in the revised estimate as fuel subsidy.
But the allocation for kerosene subsidy has been reduced to Rs3,659 crore for the next year from the revised estimate of Rs4,483 crore for the current year.