• Fuel retailers revise prices of LPG cylinders every month
  • The government subsidises 12 cylinders for each household per year by providing direct subsidy

State-run oil marketing companies today sharply hiked the price of non-subsidised liquefied petroleum gas (LPG) cylinders, the sixth hike in as many months. The new rates are effective from today. According to Indian Oil website, which supplies 30 lakh Indane cylinders daily all over India, a 14.2 kg non-subsidised LPG cylinder is now priced at 858.5 in New Delhi, a sharp hike of 144.5 from its last revision on 1st January.



This is the steepest hike in rates since January 2014 when non-subsidised LPG cylinder prices had gone up by 220.

In Kolkata, LPG cylinder prices were hiked by 149 to 896, in Mumbai by 145 to 829.5 and in Chennai by 147 to 881. Indane is delivered to the doorsteps of 11 crore households.

Fuel retailers revise prices of LPG cylinders every month. The price of LPG cylinders in India is dependent primarily on two factors – the international benchmark rate of LPG and the exchange rate of US dollar and rupee.



Latest LPG cylinder price in metros:

LPG cylinder prices were hiked from 12 Feb

Fuel retailers sell LPG cylinders at the market price but the government subsidises 12 cylinders for each household per year by providing direct subsidy.

So to insulate domestic users, the government almost doubled the subsidy it provides on the fuel to keep per cylinder outgo almost unchanged, Press Trust of India reported. The government subsidy payout to domestic users has been increased from 153.86 per cylinder to 291.48, the report said, citing industry officials.

In Budget 2020, the government increased the allocation for providing subsidised fuel, especially LPG and kerosene, by 6% to 40,915.21 crore for the next fiscal.



The allocation for LPG subsidy has been increased to 37,256.21 crore for the next fiscal from the revised estimate of 34,085.86 crore for the current year.

For the current year, 38,568.86 crore fund has been allocated in the revised estimate as fuel subsidy.

But the allocation for kerosene subsidy has been reduced to 3,659 crore for the next year from the revised estimate of 4,483 crore for the current year.

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