Systematic rise plan: LPG up by Rs 12 in 2 months

CHENNAI: First came the shocker that Chennaiites will have to shell out an additional Rs 45.39 for their subsidised LPG cylinder with the sudden spurt in prices this month. Then came the clarification that the effective hike in prices was only Rs 2.33, due to an increase in subsidy amount.

Hidden under this hype and counter is an interesting fact — since August 1, the price of a subsidised cylinder has gone up by Rs 12. This is over and above the sharp hike caused by the introduction of the Goods and Service Tax. The increase is even higher in case of non-subsidised cylinders, as a look at the prices over the last two months reveals.

Last month, a consumer here had to pay Rs 530.91 for a subsidised LPG cylinder. Now, it is Rs 576.30. An Indane official told Express, “The price was revised due to fluctuation in dollar exchange rates and rise in LPG import price.” However, officials have said much of the hike is offset by the subsidy component, leaving only Rs 2.33 for consumers to bear.

Though a small amount when looked at in isolation, this has come on top of a series of revisions in recent months. The biggest was GST, which hiked prices by Rs 31.41 in Chennai when it came into force from July 1. This took a cylinder’s price to Rs 465.56 from Rs 434.15 before the new tax regime’s rollout.
Causing concern among the lower middle class, the rise hasn’t stopped. Since August 1, the price has gone up further by Rs 12. The situation is worse for those using non-subsidised cylinders and those who gave up subsidies.

This month, price of non-subsidised domestic cylinders (14.2 kg) has gone up by Rs 47.50, while that of commercial (19 kg) has gone up by Rs 77.50. In the last two months, prices have shot up by Rs 121.50. On September 29, Rs 2 was added as distribution charge with taxes for non-subsidised cylinders, taking the price of a domestic cylinder to Rs 609. It is now Rs 656.50. Similarly, the cost of commercial cylinders has gone up to Rs 1,244.50 from Rs 1,167.