A 14.2 kg cylinder will now cost Rs 858.50 in Delhi, up from Rs 714.00. Since August, the companies are hiking LPG prices every month, thereby burning a hole in common man's pocket.
A day after the Delhi Assembly poll results were announced, the price of the non-subsidised LPG cylinder weighing 14.2 kg was on Wednesday increased by ₹144.50 to ₹149, the steepest since January 2014.
Indane Gas, which delivers cylinders to 11 crore households in India, also revises the price of LPGs every month, depending on the foreign exchange rate and the global benchmark rate of the fuel.
The government subsidises 12 cylinders of 14.2 kg each per household in a year by providing the subsidy amount directly in the bank accounts of users.
An official of a public sector oil company said on condition of anonymity that even common man using LPG cylinder would not be spared from a price hike as the amount of actual subsidy would not cover for the increase in the GST post revision of prices. The Indane gas delivers cylinders to over 11 crore households.
With the sharp increase in subsidy per cylinder now, the government may have to provide more as oil subsidy for FY20.
In Kolkata, the prices of LPG cylinders were raised by Rs 149 to Rs 896, Rs 145 to Rs 829.5 in Mumbai and Rs 147 to Rs 881 in Chennai respectively. In the updated estimation, Rs 38,568.86 crore fund has been allocated as fuel subsidy for the fiscal year 2020.