Be ready to pay more for uncapped LPG cylinder

The ‘uncapped’ domestic liquefied petroleum gas (LPG) cylinder you buy this month is bound to upset your household budget. For, it’s going to cost you even higher than what it did last month.

With the increase in international LPG price, oil companies here will now charge Rs. 977 for every ‘uncapped’ (read nonsubsidised) domestic LPG cylinder of 14.2 kg. Every cylinder you buy over and above the quota of six, fixed by the government, will carry no subsidy. The retail selling price of such non-subsidised cylinder was Rs. 848.50 between September 18 and 30, but has now increased to Rs. 977 for October. The LPG cylinder rate will now vary every month depending on the international market.

Confirming the new rate, Indian Oil Corporation, manager (pricing), Pranav Chandra told HT: “While the rate of subsidised domestic LPG cylinder (capped to a maximum of six per year) will continue to be Rs. 420 in Patna, that of non-subsidised one will be Rs. 977 for October. Non-domestic LPG cylinder (14.2 kg) will cost Rs. 1,270.50 as against to Rs. 1,111 last month.

The rate of non-domestic commercial LPG cylinder (19 kg) has gone up to Rs. 1,825 as compared to Rs. 1,613 last month.”

Non-domestic LPG cylinder (14.2 kg) can be used in orphanage, hospital, charitable trust, mid-day meal programme and mess of defence establishment. Non-domestic, commercial LPG cylinders of 19 kg are meant for hotels and other industrial usage.

The price of the 14.2 kg nondomestic LPG cylinder, which will now cost Rs. 1,270.50, is more because it carries no government subsidy, besides attracting 8.24% central excise duty and 13.5% VAT levied by the state government. However, the non-subsidised, domestic LPG cylinder — pegged at Rs. 977 for October — is free of central excise and customs duty, as in case of subsidised cylinder, while the VAT levied on it by the state government is 1%. Dealer commission per cylinder is Rs. 25.83.