Fuel retailers revise prices of LPG cylinders every month
The government subsidises 12 cylinders for each household per year by providing direct subsidy
State-run oil marketing companies today sharply hiked the price of non-subsidised liquefied petroleum gas (LPG) cylinders, the sixth hike in as many months. The new rates are effective from today. According to Indian Oil website, which supplies 30 lakh Indane cylinders daily all over India, a 14.2 kg non-subsidised LPG cylinder is now priced at ₹858.5 in New Delhi, a sharp hike of ₹144.5 from its last revision on 1st January.
This is the steepest hike in rates since January 2014 when non-subsidised LPG cylinder prices had gone up by ₹220.
In Kolkata, LPG cylinder prices were hiked by ₹149 to ₹896, in Mumbai by ₹145 to ₹829.5 and in Chennai by ₹147 to ₹881. Indane is delivered to the doorsteps of 11 crore households.
Fuel retailers revise prices of LPG cylinders every month. 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.
Latest LPG cylinder price in metros:
Fuel retailers sell LPG cylinders at the market price but the government subsidises 12 cylinders for each household per year by providing direct subsidy.
So to insulate domestic users, the government almost doubled the subsidy it provides on the fuel to keep per cylinder outgo almost unchanged, Press Trust of India reported. The government subsidy payout to domestic users has been increased from ₹153.86 per cylinder to ₹291.48, the report said, citing industry officials.
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 ₹37,256.21 crore for the next fiscal from the revised estimate of ₹34,085.86 crore 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 crore for the next year from the revised estimate of ₹4,483 crore for the current year. (With Agency Inputs)