With the price of petrol and diesel skyrocketing over the last few months because of the impact of GST (Goods and services tax) and the foreign exchange rate, as of midnight of 1 August 2018, the price of LPG cylinders will be hiked as well. According to an Indian Express report, LPG cylinders as of 1 August 2018, will be hiked by Rs.1.76 taking the price of LPG cylinders to Rs.498.02 in Delhi as compared to the previous Rs.496.26.
Commenting on the hike, Indian Oil Corporation said that all consumers will have to purchase LPG cylinders at the market price as decided by the Government of India. The impetus behind the hike in the cost of LPG cylinders has been the impact of GST and the current foreign exchange rates on the product.
The price of LPG cylinders are revised on the first day of every month, and on 1 July 2018, the cost of cylinders was up by Rs.2.71. The fluctuation of the price of LPG cylinders is because the rates are set based on the foreign exchange rate of the previous month, the average benchmark rate and the applicable GST (Goods and services tax). That said, as per the provisioning of the Government of India, consumers will receive subsidies on the overall price of cylinders for 12 cylinders a year. The subsidies will be credited directly to the bank account of the consumer.
Source: Indian Express