New Delhi: Indian Oil Corporation, the fuel retailer released a statement saying that cost of subsidised LPG cylinders has been increased by Rs 2.94 per cooking cylinder of 14.2 kilo LPG.
With the increase, cost of the 14.2 kilo cylinder will rise to Rs 505.34 from Rs 502.40.
IOC also added in the statement that cost of non-subsidised or market price LPG rates has gone up by Rs 60 per cylinder to Rs 880.
"While the price of non-subsidised LPG at Delhi will increase by Rs60 per cylinder in November 2018, mainly due to change in international price and foreign exchange fluctuations, the actual impact on subsidised domestic LPG customers is only Rs2.94 per cylinder, which is mainly due to GST," the statement said.
The rate increase has been consistent since June, and rates have gone up by Rs 14.13 per cylinder in the past five months.
Subsidies that are deposited directly in the bank accounts of users have also been increased. Subsidy transfer has been reportedly increased to Rs 433.66 per cylinder in November 2018 against Rs 376.60 per cylinder in October 2018.
"Thus the domestic subsidised LPG customer is protected against the increase in prices of LPG," said the statement.
The IOC report further reasoned that the rate hike is owing to higher global rates. Price of non-subsidised LPG in Delhi are increased by Rs 60 per cylinder. The balance Rs57.06 (Rs 60 minus Rs 2.94) is being compensated to customers by an increase in subsidy transfer to bank accounts.
Accordingly, the subsidy transfer in the customer's bank account has been increased to Rs 433.66 in November from Rs376.60 per cylinder in October.
The government subsidises only 12 cylinders of 14.2 kilo each per household in a year.