The Indian Oil Corporation on Saturday increased the price of subsidised cooking gas cylinders by Rs 2.71 because of an increase in the tax impact of the base price after a spurt in international rates and the collapse of the rupee. From July, an LPG cylinder will cost Rs 496.26 in Delhi.
“The increase is mainly on account of Goods and Services Tax on revised price of domestic non-subsidised LPG,” the Indian Oil Corporation said in a statement.
The price of non-subsidised Liquefied Petroleum Gas was raised by Rs 55.5 per cylinder due to higher global rates, the corporation announced. The balance of Rs 52.79 – after deducting Rs 2.71 from Rs 55.5 – will be compensated to consumers by increasing the subsidy transfer to their bank accounts. “Accordingly, the subsidy transfer in customer’s bank account has been increased to Rs 257.74 per cylinder in July 2018 as against Rs 204.95 per cylinder in June 2018,” the statement read. “Thus, the domestic LPG customer is protected against the increase in international prices of LPG.”
Consumer usually purchase non-subsidised LPG after exhausting their quota of 12 susbsidised cylinders. Oil firms revise their LPG rates on the first day of every month using the previous month’s average benchmark rate and foreign exchange rate.
Congress leader Randeep Singh Surjewala criticised the Narendra Modi government for the price increase. “Modi ji promised Achhe Din, but has only brought miseries & inflation for the People!” Surjewala tweeted. “’Plunging exports’ and ‘widening trade deficit’ is one the biggest casualties under failed ‘Modinomics’. Compared to Congress-UPA [government], merchandise exports have fallen under Modi government due to faulty policies. After 4 years, the shine of propaganda has waned and reality is dawning.”