Sharp hike in LPG cylinder rates from today
The state-run oil marketing companies on Wednesday sharply hiked the price of 14kg non-subsidised liquefied petroleum gas (LPG) cylinders across the metro cities. The rates will be applicable from today itself.
While in Delhi the price rose by Rs 144.50 making the cost of each cylinder to Rs 858.50, in Kolkata the cylinder will now be available at Rs 896 (hike of Rs 149), in Mumbai it is Rs 829.50 (Rs 145 hike) and in Chennai, a cylinder costs Rs 881 (Rs 147 hike).
It may be noted that the 14-kg non-subsidized LPG cylinders rose by Rs 15 in October 2019 following the rise in the price of petrol and diesel rates. The fuel prices get revised every month and vary from one city to another. Similarly, the tax on LPG changes every month depending on the fluctuation in the average international benchmark LPG rate and foreign exchange rate.
With the increase in international rates, Goods and Services Tax (GST) on LPG is calculated as per the market price changes. In other words, those buying non-subsidised cylinders pay the market price and the GST on market price.
According to analysts, the LPG’s price hike decision would help the government with more revenue resources.