Daijiworld Media Network - New Delhi (SHP)
New Delhi, Feb 12: LPG cylinder prices have been sharply hiked and the new rates would be applicable from February 12. The prices were hiked by the state-run oil marketing companies for non-subsidised liquefied petroleum gas (LPG) cylinders across metro cities. The sharp price hike has come as a surprise because the LPG cylinder prices had not increased since January 1, 2020.
According to a report with ANI, in Delhi, the price rose by Rs 144.50 to Rs 858.50, since its last revision on January 1, 2020.
In Kolkata, the LPG cylinder price is now at Rs 896.00, up by Rs 149. The price of the 14 kg Indane gas in Mumbai is at Rs 829.50, up by Rs 145. In Chennai on the other hand, the price is at Rs 881.00, which is an increase of Rs 147. The Indane gas delivers cylinders to over 11 crore households. Reportedly the company supplies around 30 lac Indane cylinders every day at the doorsteps of houses across India.
Fuel retailers revise the prices of LPG cylinders every month. Fuel retailers sell LPG cylinders at the market price but the government subsidises 12 cylinders each household per year by providing direct subsidy.
General rule of thumb states that when international rates move up, the government provides a higher subsidy and when they come down, the subsidy is cut.
Now, with the rise in market price or non-subsidised LPG price, the tax incidence on subsidised cooking fuel has also increased, leading to the current price hike