TIL Desk/Business/New Delhi/ Domestic cooking gas (LPG) price was today hiked by Rs. 1.49 per cylinder while diesel rates crossed Rs. 70 a litre mark for the first time ever on drop in rupee value. Subsidised LPG with effect from midnight tonight will cost Rs. 499.51 per cylinder in Delhi as against Rs. 498.02 currently, mainly due to the tax incidence on base price, a statement issued by Indian Oil Corp (IOC), the nation’s largest fuel retailer, said.
Diesel rates were hiked by 28 paisa a litre, the steepest increase since the daily revision in fuel rates was effected in mid-June last year. A litre of diesel now costs Rs. 70.21 in Delhi, where the rates are the cheapest in all metros and most state capitals due to lower sales tax or VAT. Petrol price was increased to Rs. 78.51 per litre from Rs. 70.30.
All LPG consumers have to buy the fuel at market price. The government, however, subsidises 12 cylinders of 14.2-kg each per households in a year by providing the subsidy amount directly in bank accounts of users. This subsidy amount varies from month to month depending on the changes in average international benchmark LPG rate and foreign exchange rate.
