Drop In Subsidised LPG By Rs 1.46 And Non-Subsidised LPG By Rs 30 A Cylinder

The Logical Indian Crew India

February 2nd, 2019 / 9:34 PM

Price Drop LPG

Image Credit: Navbharat Times

In a significant development, on January 31, 2019, one has to pay less for domestic cooking gas as the prices of domestic cooking gas were cut by Rs 1.46 per cylinder. A 14.2 kg LPG cylinder will now cost Rs 493.53 in New Delhi from midnight of Thursday in comparison to the earlier price of Rs 494.99, said Indian Oil Corp (IOC) in a statement, registering the third straight monthly reduction in LPG rate, reported The Indian Express.

IOC emphasising on non-subsidised or market priced LPG said that there is Rs 30 per cylinder cut. IOC said that the reason behind such development is the fall in the price of LPG in the international market along with the strengthening of US dollar-rupee exchange rate”. It will now cost Rs 659 per 14.2 kg cylinder in Delhi.

The slashing of price comes on the heels of Rs 120.50 cut on January 1 and Rs 133 on December 1, 2018. All LPG consumers buy the fuel at market price. For each household, the government provides 12 subsidies cylinders of 14.2 kg per households in a year by providing the subsidy directly into the bank accounts of the users.


On what basis the price change?

However, the subsidy amount alters on a monthly basis depending on the average international benchmark of LPG rate and foreign exchange rate. The subsidy rate is directly proportional to the international rates, which means when international rates go up, the government grants a higher subsidy, and vice versa.

According to the tax rules, GST on LPG has to be calculated at the market rate of the fuel. This means that with the drop in market price or non-subsidised LPG price, the tax incidence on cooking fuel will come down, resulting in the price reduction.


Gift for homemakers

In November 2018, the government increased the price of both subsidised and non-subsidised LPG cylinder. The cost of the subsidised cylinder was increased by Rs 2.94, and the non-subsidised cylinder was hiked by Rs 60. However, the recent move brought by the Modi government is considered to be a gift for homemakers.

Also Read: LPG Cylinder To Cost More From This Month: Rs 60 Hike For Non Subsidised & Rs 2.94 For Subsidised


Contributors

Written by : Debarghya Sil

Edited by :

Share your thoughts..

Related Stories

LPG Cylinder Price Hike

LPG Cylinder To Cost More From This Month: Rs 60 Hike For Non Subsidised & Rs 2.94 For Subsidised

Venkataraman Meals Erode

This Tamil Nadu Man Has Been Eliminating Hunger By Providing Hearty Meals At A Subsidised Rate Of Re 1

After Fuel Hike, Non-Subsidised LPG Was Hiked By ₹48; Subsidised By ₹2.34

MP Farmers Foreign Study Tours: Do Subsidised Trips Ensure Any ‘Real’ Help?

Bengaluru Ejipura Cylinder Blast

Bengaluru: 7 Die As Building Collapses Due To Cylinder Blast, Karnataka Govt Announces Rs 5 Lakh As Compensation

Gorakhpur

Gorakhpur Tragedy: UP Govt Files FIRs Against Hospital Staff And Oxygen Cylinder Supplier

Latest on The Logical Indian

Opinion

Men And The ‘Not All Men’ Syndrome

News

“He Was A Martyr”: Sadhvi Pragya Issues Apology After Her ‘Curse’ Remark On Hemant Karkare

Get Inspired

This Is How Officials Tracked Down Independent India’s First Voter, 102-Yr-Old Shyam Saran Negi

News

Fact Check: Girl Saying ‘Chowkidar Chor Hai’ To Poll Predicting Congress’s Lead

News

Worrying Sign: India Slips 2 Places In Press Freedom Index, Ranked 140 Out Of 180 Countries

Awareness

Why Does India Still Allow Politicians To Contest From More Than One Constituency?

x

Stories that deserve attention, delivered to your inbox!

Handpicked, newsworthy stories which deserve the attention of a rational generation.