Indian Oil Corporation has hiked prices of non-subsidised LPG cylinders, or the cooking gas a consumer buys on exhausting the subsidy quota. The hike came into effect from midnight of December 31, 2015 and January 1, 2016.For latest news on Business, like us on Facebook and follow us on Twitter.
Prices of non-subsidised LPG cylinders (14.2 kg) will go up by nearly Rs 50. In New Delhi, it will now cost 657.50, Indian Oil said in a statement, as compared to Rs 608 earlier. In Kolkata, the price has been revised higher to 686.50, Mumbai Rs 671 and Chennai Rs 671.50.
This is second successive hike in two months. In December, prices of non-subsidised LPG were raised by nearly Rs 60/cylinder.
Also with effect from today, cooking gas consumers with taxable income of more than Rs.10 lakh per annum under Income Tax Act will no longer get benefit of the subsidy on LPG cylinders.
The benefit of LPG subsidy will not be available if the consumer or his/her spouse had taxable income of more than Rs 10 lakh during the previous financial year (2014-15).
According to estimates, in FY15, 20 lakh assesses reported taxable income of more than Rs 10 lakh.
Initially, it will be done on "self-declaration" basis by the consumer while booking cylinders from January 2016.
The move could save government nearly Rs 500 crore a year. Currently, the price of a subsidised LPG cylinder in New Delhi costs Rs 419.