LPG cylinders become more costly, vigorous hike in 6 years. Chennai cylinders cost the highest among the metro cities

LPG or cooking gas prices were raised from today. All the oil marketing companies have raised their prices sharply which is the highest in 6 years. In Chennai, one 14.2 kg Cylinder after the effect of the raise is going to be Rs. 881 which is Rs. 147 more than the previous rate. This is the steepest hike in 6 years since January 2014.

The rate of LPG Cylinders in metros after the Effect From February 12, 2020, is 

Delhi - Rs.858.50

Kolkata - Rs.829.00

Mumbai - Rs.829.50

Chennai - Rs.881.00

Till Tuesday the price of one 14.2 kg cylinder in Chennai was Rs. 734.00 according to Indian Oil Corporation. The government subsidizes twelve 14.2 kg cylinders per household in a year. The buyer has to make additional purchases at the market price if he requires it. 

This amount of subsidy varies from month to month depending on the average international benchmark LPG prices and foreign exchange rates.Reports say that the government subsidy payout to domestic users has been increased from Rs.153.86 per cylinder to Rs.291.48.

The government has increased the allotment for giving subsidized fuel by 6 % to ₹40,915.21 crores in the Budget 2020. This increase was especially for LPG and kerosene. The allocation for the LPG subsidy has been increased to Rs.37,256.21 crores for the next fiscal from the revised estimate of Rs.34,085.86 crores for the current year.

Allocation for kerosene subsidy has been reduced to Rs.3,659 crores for next year which is a Rs.1000 crore reduction when compared to this year. Rs.38,568.86 crore fund has been allocated for the year 2020 in the revised estimate as a fuel subsidy.