In its monthly revision, prices of non-subsidized 14.2 kg LPG (liquid petroleum gas) cylinders were raised by an average of Rs 15 on Sunday by the state-owned Indian Oil Corporation Limited (IOC) across major Indian cities. This is the fourth consecutive month of increase in rates despite a slump in international crude prices.
The new rates will be effective from 1 December.
|Cities||Prices with effect from 1 December 2019 (Rs)||Previous price (Rs)||Change (Rs)|
In October, prices of non-subsidized 14.2 kg LPG cylinders were raised marginally by an average of Rs 13.5 in the four metro cities, while November saw an increase of as much as Rs 76.50 per cylinder.
These rates are set by state-owned oil retailers based on international crude rates and rupee’s exchange rates.
Households in India are allowed a maximum of 12 LPG cylinder purchases per year at subsidized rates. However, cylinders have to be bought at full price at the time of purchase, and the subsidy is then credited to the customer’s bank account by the government.
Subsidy received on these cylinders varies every month based on the changes in the pricing and tax rates. Further, GST (goods and service tax) on these cylinders are calculated on the market rates.
Residents also have the choice of voluntarily opt-out of subsidy.