With effect from May 1, non-subsidised LPG prices stood at Rs. 712.5 per cylinder in Delhi and Rs. 684.5 a cylinder in Mumbai, according to Indian Oil.
The prices of LPG or liquefied petroleum gas were hiked. The prices of LPG cylinder with subsidy has been increased by Rs 0.28 in Delhi and Rs 0.29 in Mumbai while the price of LPG cylinder without subsidy has been increased by Rs 6 in both Delhi and Mumbai, according to data from Indian Oil Corporation. With effect from May 1, subsidised LPG prices stood at Rs 496.14 in Delhi, Rs 499.29 in Kolkata, Rs 493.86 in Mumbai and Rs 484.02 in Chennai. Earlier, the subsidised prices were Rs 495.86 in Delhi, Rs 499 in Kolkata, Rs 493.57 in Mumbai and Rs 483.74 in Chennai.
After the hike, non-subsidised LPG prices stood at Rs 712.5 per cylinder in Delhi, Rs 738.5 per cylinder in Kolkata, Rs 684.5 per cylinder in Mumbai and Rs 728 per cylinder in Chennai. The April prices were Rs 706.50 in Delhi, Rs 732.50 in Kolkata, Rs 678.50 in Mumbai and Rs 722.00 in Chennai.
Subsidised LPG was priced at Rs 414 per cylinder in early 2014. Simultaneously. This is the third straight increase in LPG rate. Non-subsidised LPG is the gas that consumer buys after exhausting their quota of 12 cylinders of 14.2-kg at sub-market or subsidised rates in a year. LPG, as well as ATF prices, are revised on 1st of every month based on the average international rate for benchmark fuel and foreign exchange rate in the preceding month.
Also, the price of kerosene sold through the public distribution system (PDS) was increased to Rs 31.13 per litre in Mumbai from Rs 30.87. According to tax rules, the goods and services tax on LPG has to be calculated at the market rate of the fuel. The government may choose to subsidise a part of the price but tax will have to be paid at market rates. So, with the rise in market price or non-subsidised LPG price, the tax incidence on subsidised cooking fuel has also increased, leading to the current price hike.
Delhi has been declared a kerosene-free state and oil companies do not sell subsidised kerosene in the city. Non-subsidised kerosene costs Rs 64,177.63 per kl (Rs 64.17 per litre) in the national capital.