Subsidised LPG price hiked by Rs 2.71 per cylinder

New Delhi: Subsidised cooking gas price was hiked by Rs 2.71 per cylinder on Saturday as a result of the tax impact of base price rising due to spurt in international rates and fall in the rupee. Subsidised LPG with effect from midnight Saturday will cost Rs 493.55 in Delhi, a statement issued by Indian Oil Corporation (IOC) said.

Oil firms revise the LPG price on 1st of every month based on average benchmark rate and foreign exchange rate in the previous month. "The increase is mainly on account of GST on revised price of Domestic Non-Subsidised LPG," the statement said. As a result of higher global rates, the price of Non-Subsidized LPG at Delhi will increase by Rs 55.50 per cylinder.

"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," the statement said.

"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."