MARKETS

BSE Prices delayed by 5 minutes... Prices as on Dec 19, 2018 - 12:52PM   ABB India 1320 [ -1.19% ]ACC 1558.55 [ 3.57% ]Ambuja Cements Ltd. 229.35 [ 4.37% ]Asian Paints Ltd. 1395.95 [ 3.06% ]Axis Bank Ltd. 636 [ 2.62% ]Bajaj Auto Ltd. 2880 [ 1.37% ]Bank of Baroda 115.05 [ 2.45% ]Bharti Airtel 322.95 [ 1.83% ]Bharat Heavy Ele 70.95 [ 1.57% ]Bharat Petroleum 358.6 [ 1.53% ]Britannia Ind. 3224.55 [ 1.77% ]Cairn India Ltd. 285.4 [ 0.90% ]Cipla 524.4 [ 0.25% ]Coal India 251.55 [ -0.28% ]Colgate Palm. 1335.05 [ 1.76% ]Dabur India 456.1 [ 2.95% ]DLF Ltd. 190.5 [ 6.99% ]Dr. Reddy's Labs 2611.7 [ -1.00% ]GAIL (India) Ltd. 356.55 [ 0.55% ]Grasim Inds. 870.45 [ 2.02% ]HCL Technologies 957.15 [ -2.87% ]HDFC 1978 [ 1.27% ]HDFC Bank 2130 [ -0.30% ]Hero MotoCorp 3307.9 [ 0.24% ]Hindustan Unilever L 1849 [ 0.43% ]Hindalco Indus. 226.6 [ 0.53% ]ICICI Bank 366.3 [ 1.09% ]IDFC L 42.35 [ 2.79% ]Indian Hotels Co 147.25 [ 1.73% ]IndusInd Bank 1634.85 [ -0.30% ]Infosys 663.5 [ -1.90% ]ITC Ltd. 280.85 [ 1.03% ]Jindal St & Pwr 168.85 [ 2.40% ]Kotak Mahindra Bank 1232.5 [ -0.37% ]L&T 1434.6 [ 0.43% ]Lupin Ltd. 841.5 [ -0.34% ]Mahi. & Mahi 780.1 [ 1.21% ]Maruti Suzuki India 7914.75 [ 2.02% ]MTNL 13.78 [ 0.22% ]Nestle India 11175 [ 0.74% ]NIIT Ltd. 89.7 [ 0.11% ]NMDC Ltd. 96.6 [ 1.26% ]NTPC 148.75 [ 0.64% ]ONGC 148.25 [ 0.24% ]Punj. NationlBak 76.4 [ 2.83% ]Power Grid Corpo 197.75 [ 0.56% ]Reliance Inds. 1143.75 [ 0.64% ]SBI 298.5 [ 2.03% ]Vedanta 207.95 [ -0.45% ]Shipping Corpn. 44.15 [ 0.46% ]Sun Pharma. 426 [ -1.64% ]Tata Chemicals 713.1 [ -0.53% ]Tata Global Beverage 213.8 [ 1.91% ]Tata Motors Ltd. 175 [ 0.34% ]Tata Steel 529.2 [ 0.42% ]Tata Power Co. 79.7 [ 1.27% ]Tata Consultancy 1965 [ -1.14% ]Tech Mahindra Ltd. 693.7 [ -2.07% ]UltraTech Cement 4154 [ 3.65% ]United Spirits 650 [ 0.89% ]Wipro Ltd 334.85 [ -0.16% ]Zee Entertainment En 459.85 [ -0.59% ]

News Details

You can view in detail.
LPG subsidy jumps 60% as govt maintains prices to help consumers 12/07/2018 15:14

Cooking gas (LPG) subsidy has jumped by over 60 per cent in last two months as the government maintains price line despite rising international rates, Indian Oil Corp (IOC) Chairman Sanjiv Singh said.

All LPG consumers have to buy 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.

"Subsidy amount (transferred in bank accounts) was Rs 159.29 per cylinder in May and it was raised to Rs 204.95 in June and to Rs 257.74 per cylinder this month," he said.

The higher subsidy was meant to keep rates of subsidised LPG in check, Singh added.

International rates of LPG, which was used as a benchmark for pricing of domestic fuel, have been on the run since June. Non-subsidised or market priced LPG price was Rs 653.50 per 14.2-kg bottle in the national capital in May, which rose to Rs 698.50 (Rs 48 pr cylinder) in June.

This month price has further risen by Rs 55.50 to Rs 754 in Delhi.

Non-subsidised LPG is the one that consumers buy after exhausting their quota of below market rate fuel. It is also bought by those who have voluntarily given up subsidy and by commercial establishments.

"While LPG prices have shot up, subsidised LPG rates havent," Singh said, adding that only the minor tax part has been passed on to consumers.

As per tax rules, GST on LPG has to be calculated at market rate of the fuel. The government may choose to subsidise a part of the price but tax will have to be paid at market rates.

This has meant that GST is calculated every month on the rate at which domestic non-subidised LPG is priced. With rates on the rise, the tax has also risen, resulting in a minor increase in rates for subsidised users, he said.

Subsidised LPG was priced at Rs 491.21 per cylinder in May, which rose to Rs 493.55 in June and Rs 496.26 this month, Singh noted.

"The increase is mainly on account of GST on the revised price of Domestic Non-Subsidised LPG," he said.

As a result of higher global rates, the price of non-subsidised LPG in Delhi will increase by Rs 55.50 per cylinder.

"The balance Rs 52.79 (Rs 55.50 minus Rs 2.71) is being compensated to the customer by an increase in subsidy transfer to their bank account. Accordingly, the subsidy transfer in the customer's bank account has been increased to Rs 257.74 per cylinder in July as against Rs 204.95 per cylinder in June. Thus the domestic LPG customer is protected against the increase in international prices of LPG," he said.

Oil firms revise LPG price on 1st of every month based on average benchmark rate and foreign exchange rate in the previous month.

LOAD MORE