Non-subsidised LPG cylinder rates hiked sharply across metros

LPG cylinder prices hiked by over Rs 100 across metro cities

LPG cylinder prices hiked by over Rs 100 across metro cities

State-run oil marketing company Indian Oil Corporation (IOC) has on Wednesday increased the prices of non-subsidised LPG (liquefied petroleum gas) by up to Rs 145 per cylinder. In Kolkata, the price is now at Rs 896.00, up by Rs 149.

Indian Oil Corporation, which supplies almost 30 lakh of these cylinders daily across India under the brand name Indane Gas, had last revised the price of LPGs on January 1, 2020.

This is the steepest hike in rates since January 2014 when non-subsidised LPG cylinder prices had gone up by ₹220. The price of commercial cylinders was hiked last week.

Indane Gas, which delivers cylinders to 11 crore households in India, also revises the price of LPGs every month, depending on the foreign exchange rate and the worldwide benchmark rate of the fuel. The tax on LPG changes every month, depending on the fluctuation in the average global benchmark LPG rate and foreign exchange rate.

LPG cylinder prices hiked by over Rs 100 across metro cities

The price of subsidised LPG cylinder (14.2 kg) now works to around Rs 557 with the government providing Rs 157 as subsidy directly into the account of eligible consumers. The Indane gas delivers cylinders to over 11 crore households. The government subsidises 12 cylinders of 14.2-kg each per household in a year by providing subsidy amount directly in the bank accounts of users.

With the sharp increase in subsidy per cylinder now, the government may have to provide more as oil subsidy for FY20.

The company had an inventory gain of Rs 1,608 crore in the three month period as compared to an inventory loss of Rs 8,523 crore in the third quarter of 2018-19 fiscal, he said, adding that the company's net refinery margin stood at $2.15 per barrel in Q3 as compared to $5.12 a year ago.

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