For the third month in a row, the price of liquefied petroleum gas (LPG) was increased by Rs 76 per cylinder on Friday.
As per the latest price issued by Indian Oil, a non-subsidised LPG cylinder in Delhi would cost Rs 681.50, while in other major cities it will be—Kolkata: Rs 706, Mumbai: Rs 651 and in Chennai: Rs 696.
The new prices will come into effect from November 01. Earlier, in October and September prices of cylinders were increased by Rs 15 each month.
While fixing the rates of the cylinders the state-run fuel retails take an international benchmark of LPG and exchange rates of US dollars against rupees into consideration.
Consumers have to buy the LPG on the market price. The government, however, has subsidized 12 cylinders of 14.2 kg in a year per household, through which the customers get a certain percentage of money into their accounts as a direct benefit of the scheme.
The amount for subsidy varies from time to time as it depends on the international benchmark LPG rate and foreign exchange rate. If the market goes up, people get a higher subsidy. But depending on the current market tax rates and the government’s decision on subsiding a part of the price also results in rise or fall in the price of subsidised cylinders.
(With input from agencies)