Comments
For the third time in the space of two months, the price of subsidised LPG cylinders have been hiked. From September 1, the price of subsidised 14.2 kg LPG cylinder will be hiked by ₹2 per cylinder.
Each subsidised LPG cylinder will cost ₹425.06 in Delhi as compared to ₹423.09 earlier. This is the amount which the government will use to calculate the subsidy that is to be transferred into consumers’ accounts.
Under Direct Benefit Transfer for LPG (DBTL), consumers purchase LPG cylinders at market rates and the difference between the market price and the rate of subsidised LPG cylinders is transferred directly into bank accounts.
Rates of subsidised LPG cylinders were hiked by ₹1.93 per cylinder on August 16 and prior to that it was hiked by ₹1.98 on July 1.
While the move is similar to one that the UPA government implemented for eliminating subsidies on diesel by levying a 50 paise per hike every month, the Ministry of Petroleum and Natural Gas has denied any such motives so far.
While increasing the rates of the subsidised LPG cylinders, oil marketing companies cut rates of non-subsidised LPG cylinders by ₹20.5 per cylinder. After exhausting the quota of 12 cylinders per year, consumers can buy non-subsidised LPG cylinders which will now cost ₹466.50 per cylinder in Delhi.
Essentially, the subsidy that the government will have to transfer into a consumer’s bank accounts for purchase of the first 12 cylinders a year will be ₹41.44 per cylinder.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.