LPG cylinders expensive before Diwali, Now you have to give so much money …
Prior to Diwali, the price of subsidy and non-subsidized LPG cylinders has been increased.
- Subsidy cylinders cost Rs 2.94
- 60 cylinders for non-subsidized cylinders
- LPG price has increased 6 times so far since June
New Delhi: Just before Diwali, the price of subsidy and non-subsidized LPG cylinders has been increased. Subsidized LPG cylinder price increased by Rs 2.94 per cylinder. At the same time, the price of non-subsidized cylinders was increased by Rs 60. Changes in the base price of the cylinder and the effect of tax on it have increased. Indian Oil (IOC) said in the statement that the 14.2 kg subsidized LPG cylinder will go up from Rs 502.40 per night to Rs 505.34 per cylinder.
The subsidized LPG cylinder is the sixth increase since June. Since then, the price has increased by Rs 14.13. 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. 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.
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In line with the average international benchmark rate and foreign currency exchange rate, the prices of LPG cylinders are fixed, on the basis of which the subsidy amount changes every month. When international rates increase, the government gives more subsidy, but according to the tax 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.
The statement said that the rise in global prices and fluctuations in foreign currency exchange, without subsidizing LPG cylinders, has become 60 rupees, whereas LPG customers, subsidized LPG customers will be burdened with only Rs 2.94.