Modi government’s New Year gift: Steep hike in prices of non-subsidised LPG cylinder

On a day when people celebrated the beginning of a new year, the Modi government increased the financial burden on consumers by announcing a steep hike in prices of non- subsidised LPG cylinder.

As per the revised rate, a non-subsidised LPG cylinder will be available for ₹ 714 in Delhi and ₹ 684.5 in Mumbai from January 2020.

After the hike, people will have to pay ₹19 and ₹ 19.5 paise extra in Delhi and Mumbai respectively for a non-subsidised LPG cylinder.

Similarly, in Kolkata and Chennai prices has been increased by ₹ 21.5 and ₹ 20 per cylinder respectively.

It is important to note that since August last year, LPG prices have been increased by ₹ 140 per cylinder, and this marked the fifth increase in the prices.

Here is the list of revised LPG prices across the four metro cities:

Delhi -   ₹ 714 (Rs 19 hike)

Kolkata - ₹ 747 (Rs 20 hike)

Mumbai - ₹ 684.5 (Rs 19.5 hike)

Chennai - ₹ 734 (Rs 21.5 hike)

Business Today reported: “The tax on LPG changes every month, depending on the fluctuation in the average international benchmark LPG rate and foreign exchange rate.

With every increase in the international rates, the Goods and Services Tax (GST) on LPG is calculated not on the base price but market price changes. With every hike, the government has been providing higher subsidy via the direct benefit transfer scheme to subsidised customers.

However, the non-subsidised category has no such protection. Those buying non-subsidised cylinders pay the market price plus the GST on market price. That is why this time the cost per cylinder for them has gone up by ₹ 19-21 per cylinder.”