The price of non-subsidised or market priced LPG rates have been cut by a steep Rs 133 per cylinder due to the fall in the international oil rates and appreciation in the rupee.
The price of non-subsidised or market priced LPG rates have been cut by a steep Rs 133 per cylinder due to the fall in the international oil rates and appreciation in the rupee. It will now cost Rs 809.50 per 14.2-kg in Delhi. The government also cut subsidised LPG price cut by Rs 6.5 per cylinder on account of tax impact on the reduced market rate for the fuel.
Recently, the market priced of LPG rates topped the Rs 1,000 per cylinder-mark in some states as oil prices surged to a high of $85 a barrel. The price of the subsidised cylinder also surged due to increase in tax component due to the higher base price.
Now after the cut, a 14.2-kg subsidised LPG cylinder will cost Rs 500.90 as against Rs 507.42 in the national capital from Saturday. The price cut has come after six continuous monthly hikes since June this year. After the cut, the non-subsidised gas cylinder will cost Rs 809.50 per 14.2-kg in Delhi.
“Accordingly, the upfront cash payment by the consumer for purchase of domestic LPG refill will reduce by Rs 133 cylinder, i.e. from Rs 942.50 per cylinder to Rs 809.50 cylinder in December, 2018 in Delhi market,” Indian Oil Corporation said in a statement.
All LPG consumers buy cylinders at retail prices, after which the government subsidises 12 cylinders of 14.2-kg each per households in a year through Direct Benefits Transfer (DBT).