The LPG cylinder in your kitchen has become expensive by about Rs 2 once again this month. The second increase in the month is a result of the oil ministry’s decision to increase the commission paid to LPG dealers. If you have a 14.2 kg subsidised LPG cylinder, it will now cost you Rs 507.42 in Delhi, Rs 505.05 in Mumbai, Rs 495.39 in Chennai and Rs 505.05 in Kolkata.
The oil ministry said the domestic LPG distributors’ commission for the 14.2 kg cylinder and the 5 kg cylinder has been increased from Rs 48.89 and Rs 24.20 to Rs 50.58 and Rs 25.29 per cylinder, respectively. The dealers’ commission include Rs 20.50 delivery charge for every 14.2 kg cylinder. If you collect your LPG cylinder directly from the distributor’s premises, the delivery charge will be deducted from the price.
LPG prices are revised at the beginning of each month but the government absorbs any increase in international prices of LPG as subsidy. Only a subsequent increase, if any, on GST is passed on to the consumers. It is this GST increase which had led to a rate hike of Rs 2.94 per LPG cylinder on November 1.
Rates of LPG cylinders differ by a few rupees from state to state because of transportation cost and local taxes. Rates of non-subsidised LPG cylinders have been increased by Rs 60 in Delhi already this month. The market price of such non-subsidised LPG cylinders has now been increased from Rs 939 to Rs 972.50.
The government subsidises only 12 cylinders of 14.2 kg each per household in a year by transferring the subsidy amount directly into the bank accounts of LPG consumers.