New Delhi | Jagran Business Desk: The Indian Oil Corporation (IOC) on Thursday announced that the prices of non-subsidised liquefied petroleum gas (LPG) cylinders across the country will increase by Rs 50. This is the first time in five months that the prices of non-subsidised LPG gas cylinders have seen a spike.  

With this hike, 14.2 kilograms of non-subsidised LPG cylinder will cost Rs 644 in Delhi for the month of December. In Kolkata, it will cost Rs 670.50 while it will be available in Mumbai at a price of Rs 644. In Chennai, a 14.2 kilograms of non-subsidised LPG cylinder will cost Rs 660 now, Indian Oil Corporation said, which supplies LPG under the brand Indane.

The price of LPG gas cylinder is determined by the state-run oil companies and is revised on a monthly basis. The last time when the rates were changed was in July. However, the state-run oil companies are under constant pressure due to the ongoing coronavirus pandemic because of which the prices of LPG gas cylinders have been revised in December.

In September this year, the government had also eliminated the need to provide subsidy on domestic cooking gas due to the ongoing coronavirus pandemic. With the development, the government could easily make a saving of over Rs 20,000 crore in FY21 towards LPG subsidy. This would be huge given the pressure on the government to step up expenditure for Covid-19 relief schemes.

The government has allocated Rs 40,915 crore as petroleum subsidy for FY21, a 6 per cent increase from Rs 38,569 crore allocated for the last fiscal. Out of this,the allocation for LPG subsidy has been increased to Rs 37,256.21 crore for the current year. But so far in the first quarter period, the government had to draw just about Rs 1,900 crore from the subsidy provisions.

(With IANS inputs)

Posted By: Aalok Sensharma