Subsidised cooking gas price was hiked by Rs 2.71 a cylinder were hiked by the state-run oil company on Saturday as a result of tax impact of base price rising due to spurt in international rates and fall in rupee.

A subsidised LPG (liquefied petroleum gas) cylinder with effect from midnight July 1, will cost Rs 493.55 in Delhi, as per a statement issued by Indian Oil Corp (IOC) said.

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

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

As a result of higher global rates, the price of Non-Subsidized LPG at Delhi will increase by Rs 55.50 a cylinder.

"The balance Rs.52.79 (Rs.55.50 minus Rs.2.71) is being compensated to the customer by increase in subsidy transfer to their bank account. Accordingly, the subsidy transfer in customer's bank account has been increased to Rs 257.74 per cylinder in July 2018 as against Rs 204.95 per cylinder in June 2018. Thus the domestic LPG customer is protected against the increase in international prices of LPG," the statement said.

Consumers across the country can avail a maximum of 12 subsidised cylinders of 14.2-kg each for the whole year. After the quota limit is exhausted, one has to buy non-subsidised or market priced LPG cylinders.

Inputs from PTI