<p>In the steepest hike since 2014, the state-owned oil marketing companies on Wednesday raised the price of non-subsidised 14.2 KG cooking gas cylinder by Rs 144.50 per cylinder to Rs 861.50 in Bangalore, Rs 858.50 in Delhi and Rs a sharp Rs 881 in Chennai.</p>.<p>However, to insulate the domestic consumers, the Centre almost doubled the subsidy amount per cylinder to Rs 291 per cylinder from the earlier Rs 153 per refill.</p>.<p>The government subsidises 12 cylinders for each household per year by providing a direct subsidy.</p>.<p>This is the sharpest upward revision in cooking gas prices since January 2014, when they were increased by Rs 220 per cylinder, which came a day after the parliament's budget session came to a halt.</p>.<p>According to industry sources, the hike of such magnitude needed permission from the government.</p>.<p>“Ideally, the hike would have been announced on February 1 itself since the LPG price revision is done on the first of every month but the approval took some time,” an industry source said.</p>.<p>The government has allocated Rs 38,568 crore for fuel subsidy this financial year in the revised estimate that was announced in the budget for 2020-21.</p>.<p>The price of LPG cylinders is determined based on the international benchmark rate of LPG and the exchange rate of the rupee versus the US dollar.</p>
<p>In the steepest hike since 2014, the state-owned oil marketing companies on Wednesday raised the price of non-subsidised 14.2 KG cooking gas cylinder by Rs 144.50 per cylinder to Rs 861.50 in Bangalore, Rs 858.50 in Delhi and Rs a sharp Rs 881 in Chennai.</p>.<p>However, to insulate the domestic consumers, the Centre almost doubled the subsidy amount per cylinder to Rs 291 per cylinder from the earlier Rs 153 per refill.</p>.<p>The government subsidises 12 cylinders for each household per year by providing a direct subsidy.</p>.<p>This is the sharpest upward revision in cooking gas prices since January 2014, when they were increased by Rs 220 per cylinder, which came a day after the parliament's budget session came to a halt.</p>.<p>According to industry sources, the hike of such magnitude needed permission from the government.</p>.<p>“Ideally, the hike would have been announced on February 1 itself since the LPG price revision is done on the first of every month but the approval took some time,” an industry source said.</p>.<p>The government has allocated Rs 38,568 crore for fuel subsidy this financial year in the revised estimate that was announced in the budget for 2020-21.</p>.<p>The price of LPG cylinders is determined based on the international benchmark rate of LPG and the exchange rate of the rupee versus the US dollar.</p>
