From 1st March prices of subsidized and unsubsidized cooking gas will rise. Subsidized cooking gas’ price will rise by Rs.2.08 per cylinder and that of unsubsidized will rise by Rs. 42.50 announced the Indian Oil Corporation. Currently, the price of the 14.2 kg subsidized LPG cylinder is Rs. 493.53 in Delhi. The price has been increased because of the tax impact on the increased market rate of fuel and mainly due to a change in international price and foreign exchange fluctuations.
Previously prices had been reduced by Rs. 13.39 per cylinder. In year 12 cylinders per household are subsidized by the government. The subsidized amount is directly deposited in the consumer’s account. The amount varies from month to month depending on the changes in the average international benchmark and foreign exchange rate. The goods and service tax on LPG is calculated at the market rate of the fuel as per the tax rules. The LPG prices are revised on the 1st of every month. The government can only subsidize a part of the price.
