The price of a subsidised Liquified Petroleum Gas (LPG) 14.2 kg cylinder was increased by the government-owned Indian Oil Corporation by 28 paise in New Delhi and 29 paise in Mumbai. Whereas the price of cylinders that aren’t subsidised have been increased by Rs 6 per cylinder in both the cities.
A non-subsidised LPG cylinder will now cost Rs 712.5 in New Delhi, Rs 684.50 in Mumbai, Rs 738.50 in Kolkata and Rs 728 in Chennai.
Subsidised LPG rates now stand at Rs 496.14 per cylinder in New Delhi, Rs 499.29 in Kolkata, Rs 493.86 in Mumbai and Rs 484.02 in Chennai.
Being the country’s largest fuel retailer Indian Oil sells LPG under the brand name of Indane.
The consumers of LPG have to purchase the fuel at market price. The government has set up a provision of transferring the subsidy amount directly in the accounts of the consumer. The limit is set at 12 cylinders of 14.2 kg each per household.
The amount of subsidy is directly dependent on the average international benchmark LPG rate and foreign exchange rate.