In its monthly revision, prices of non-subsidized 14.2 kg LPG (liquid petroleum gas) cylinders were raised marginally by an average of Rs 13.5 by the state-owned Indian Oil Corporation Limited (IOC) across major Indian cities. This is the second consecutive month of increase in rates amid disruption in oil production at Saudi Arabia’s facilities in September.
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IOCL had issued a release last week assuring that Oil Marketing Companies “are fully equipped to meet the enhanced LPG demand through both indigenous sources as well as imports.”
“While all LPG suppliers, including Saudi Aramco, are standing by their commitment to dispatch agreed quantities, indigenous supplies have also been stepped up and additional cargoes being arranged to meet the enhanced demand in the festive period.”
“The OMCs stand by their commitment of providing uninterrupted supply of LPG cooking gas to their valued customers, particularly in the ensuing festive season,” it added.
In July and August, LPG prices were cut by Rs 100 and Rs 62 respectively on account of softening international prices.
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.