The subsidized LPG cylinders is the sixth increase since June. Since then, the price has increased by Rs 14.13.
Just before the festival of Diwali, the common man’s pocket was hit again by inflation. Subscriptioned LPG cylinders rose by Rs 2.94 per cylinder on Wednesday. Changes in the base price of the cylinder and the effect of tax on it have increased.
Indian Oil Corp (IOC) said in the statement that the price of 14.2 kg subsidized LPG cylinder rose from Rs 502.40 to Rs 505.34 per cylinder since Wednesday midnight.
LPG consumers have to buy LPG cylinders at market value. However, the government directly imposes subsidy on the customers’ bank account at 12 cylinders of 14.2 kg in a year.
Increase in non-subsidized LPG cylinders
Prices of non-subsidized LPG cylinder increased by Rs 60 to Rs 880 per cylinder. In addition, the subsidy transferred to the customers’ accounts increased to Rs 433.66 per cylinder in November 2018, which was at Rs 376.60 per cylinder in October.
In the petrol and diesel received from last 14 days, relief was also received on Thursday. Petrol was cheaper by 18 paise a liter in Delhi, after which it now costs Rs 79.37 per liter. The price of diesel is 73.78 per liter. There has been no reduction in diesel prices on Thursday.
It is to be noted that the prices of LPG cylinders are fixed according to the average international benchmark rate and foreign currency exchange rate, on which basis the subsidy amount changes every month.When international rates increase, the government gives more subsidy, but tax According to the rules, the calculation of Goods and Services Tax (GST) on LPG is decided only at the market price of fuel.
In such a situation, the government can give a portion of fuel price as subsidy, but tax is to be paid at the market rate. This leads to an increase in prices.
It said that increase in global prices and fluctuations in foreign currency exchange, without subsidizing LPG cylinders, has become 60 rupees, whereas subsidized LPG customers will be burdened with only Rs 2.94 due to GST.
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