LPG prices hiked by Rs 55, GST blamed; cooking in kitchen at home turns expensive

LPG prices hiked: Following the spurt in international crude rates and fall in rupee, oil companies have hiked prices of subsidised cooking gas by Rs 55 per cylinder. Oil firms revise LPG price on 1st of every month based on average benchmark rate and foreign exchange rate in the previous month. The subsidised cylinder will now cost Rs 493.55 in Delhi, Rs 494.10 in Mumbai, Rs 499.48 in Kolkata, and Rs 484.67 in Chennai.
 
"The increase is mainly on account of GST on the revised price of Domestic Non-Subsidised LPG," said a statement issued by Indian Oil Corp (IOC).
 
The statement further said, "The balance Rs 52.79 (Rs 55.50 minus Rs 2.71) is being compensated to the customer by increase in subsidy transfer to their bank account. Accordingly, the subsidy transfer in customer's bank account has been increased to Rs 257.74 per cylinder in July 2018 as against Rs 204.95 per cylinder in June 2018. Thus the domestic LPG customer is protected against the increase in international prices of LPG." 
 
Those who are using domestic non-subsidised LPG will have to pay Rs 754 in Delhi, Rs 728.50 in Mumbai, Rs 781.50 in Kolkata, and Rs 770.50 in Chennai. The oil companies have also increased the prices of LPG cylinder used in hotels and restaurants. With an increase of Rs 77 per cylinder in last month, it used to cost Rs 1244.50 in Delhi, but with new hike it will now cost Rs 1328 in the national capital.  
 
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Notably, domestic consumers buy non-subsidised or market price LPG after exhausting their quota of 12 subsidised cylinders of 14.2-kg each.