- Thursday's increase in prices marked a reversal in the trend in LPG prices in past three months.
- Before the latest hike, the subsidised LPG prices had been lowered by a total Rs 13.89 per cylinder in Delhi since November, data from Indian Oil showed. The non-subsidised LPG rates were reduced by Rs 283.5 per cylinder during this period.
- In February, the subsidised and non-subsidised LPG prices in Delhi had stood at Rs 493.53 per cylinder and Rs 659.00 per cylinder respectively.
- Attributing the increase in non-subsidised rates in the national capital to the change in international price and foreign exchange fluctuations, Indian Oil said in a statement the actual impact on "subsidised LPG customers is only Rs 2.08 per cylinder".
- In Mumbai, the subsidised and non-subsidised LPG prices were increased to Rs 493.32 per cylinder and Rs 673.50 per cylinder with effect from Friday, according to Indian Oil Corporation's website - iocl.com.
- "The subsidy transfer in customers' bank account has been increased to Rs 205.89 per cylinder in March 2019 as against Rs 165.47 per cylinder in February 2019," said Indian Oil.
- Currently, LPG consumers in the country have to purchase the fuel at market price. The government, however, subsidises 12 cylinders of 14.2-kg each per households in a year by providing the subsidy amount directly in bank accounts of users.
- This subsidy amount varies from month to month depending on the changes in the average international benchmark LPG rate and foreign exchange rate.
- As per tax rules, Goods and Services Tax (GST) on LPG has to be calculated at market rates.
- The government may choose to subsidise a part of the price however the tax will have to be paid at market rates.
(With agency inputs)
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