The Indian Oil Corporation on Wednesday increased the price of subsidised liquefied petroleum gas by Rs 2.94 per cylinder and of non-subsidised cylinders by Rs 60, PTI reported. A 14.2-kg subsidised cylinder will cost Rs 505.34 from November 1.
International oil price and foreign exchange fluctuations influenced its decision, the corporation said. The price of a subsidised cylinder of cooking gas has gone up Rs 14.13 in the last six months.
“The actual impact on subsidised domestic LPG customers is only Rs 2.94 per cylinder, which is mainly due to the Goods and Services Tax,” the Indian Oil Corporation said in a statement. “The subsidy transfer in customers’ bank account has been increased to Rs 433.66 per cylinder in November 2018 as against Rs 376.60 per cylinder in October 2018. Thus, the domestic subsidised LPG customer is protected against the increase in prices of LPG.”
Consumers usually purchase non-subsidised LPG after exhausting their quota of 12 susbsidised cylinders. Oil firms revise the LPG rates on the first day of every month using the previous month’s average benchmark rate and foreign exchange rate.