NEW DELHI : In the fourth such consecutive hike this month, state-run fuel retailers have increased the price of liquefied petroleum gas (LPG) cylinders by 13.50 in Delhi.

According to Indian Oil, which supplies 30 lakh Indane cylinders daily all over India, a 14.2 kg non-subsidised LPG cylinder is now priced at 695 in New Delhi. In Mumbai, the LPG cylinder is priced at 665, 714 in Chennai and 725 in Kolkata. Fuel retailers change prices from the first day of every month.

In November, LPG prices were increased by about 76 a cylinder. In October and September, prices had gone up by around 15 each.

As compared with June when the cylinder was being sold for 737.50 in Delhi, LPG prices are now cheaper.

The price of LPG cylinders in India is dependent primarily on two factors -- 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 each household per year by providing direct subsidy. When international rates move up, the government provides a higher subsidy. But as per tax rules, GST on LPG has to be calculated at the market rate of the fuel. The government may choose to subsidize a part of the price, but tax will have to be paid at market rates. This leads to an increase or decrease in the price of subsidised cylinders.

India's largest fuel retailer, Indian Oil, has recently launched a campaign asking customers to conduct pre-delivery checks for LPG cylinder every time a refill is supplied. It said that pre-delivery checks for LPG cylinders include cylinder weight demonstration, O-Ring leak check, Valve leak check, etc. These checks are to be done at the time of LPG cylinder delivery at customer premises.

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