Business Bureau :
Consumers buying domestic cooking gas will get subsidy of Rs 348.10 per cylinder deposited in their bank accounts
OIL marketing companies (OMCs) have steeply raised the prices of non-subsidised liquefied petroleum gas (LPG) by Rs 145.50 per cylinder from Wednesday. Consumers will have to shell out Rs 905 for buying LPG cylinder of 14.2 kg in the city compared to earlier Rs 759.50 per cylinder, a hike of Rs 145.50 per cylinder. Consumers buying domestic cooking gas will get subsidy of Rs 348.10 per cylinder deposited in their bank accounts. Government gives subsidy to consumers up to 12 cylinders in a year.
Those who have exhausted the quota of 12 cylinders will have to pay the full amount without getting subsidy. Similarly, the commercial LPG cylinder of 19 kg are available at Rs 1,584.50 per cylinder. The prices have not been hiked this month in February. The commercial cylinder prices were last raised in January from Rs 1,358 per cylinder to Rs 1,584.50, a rise of Rs 226.50 per cylinder. The major state-owned OMCs are Bharat Petroleum Corporation Limited (BPCL), Hindusthan petroleum Corporation Limited (HPCL) and Indian Oil Corporation (IOC).
The tax on LPG changes every month, depending on the fluctuation in the average international benchmark LPG rate and foreign exchange rate. With every increase in international rates, Goods and Services Tax (GST) on LPG is calculated not on the base price but market price changes. The Government provides higher subsidy to subsidised customers via the direct benefit transfer scheme but the non-subsidised category has no such protection. Those buying non-subsidised cylinders pay the market price plus the GST on market price.