In its monthly revision, prices of non-subsidized 14.2 kg LPG (liquid petroleum gas) cylinders were raised by Rs 76.50 by the state-owned Indian Oil Corporation Limited (IOC) across major Indian cities. This is the third consecutive month of increase in rates despite a slump in international crude prices.
The new rates will be effective from 1 November.
|Cities||Prices with effect from 1 November 2019 (Rs)||Previous price (Rs)||Change (Rs)|
In July and August, LPG prices were cut by Rs 100 and Rs 62 respectively on account of softening international prices. In October, prices of non-subsidized 14.2 kg LPG cylinders were raised marginally by an average of Rs 13.5 in the four metro cities.
These rates are set by state-owned oil retailers based on international crude rates and rupee's exchange rates.
In October, with rapid recovery in Saudi Arabian production after attacks on its oil plants helped offset losses in Ecuador and voluntary curbs from OPEC under a supply pact, the output from Organization of the Petroleum Exporting Countries (OPEC) recovered from an eight-year low.
Worries over slower global economic growth hampering oil demand have continued to haunt the market as leaders from the United States and China struggle to end their 16-month dispute that has roiled trade between the world's top two economies.
As a result, crude oil prices have been on the down-low in the past month, with international benchmark Brent crude set to post a weekly loss of about 4 percent on Friday.
Households in India are allowed a maximum of 12 LPG cylinder purchases per year at subsidized rates. However, cylinders have to be bought at full price at the time of purchase, and the subsidy is then credited to the customer's bank account by the government.
Subsidy received on these cylinders varies every month based on the changes in the pricing and tax rates. Further, GST (goods and service tax) on these cylinders are calculated on the market rates.
Residents also have the choice of voluntarily opt-out of subsidy.