New Delhi: The price of non-subsidised cooking gas has been reduced by Rs 62.50 per cylinder on softening international rates, stated a report. Thus, the market priced Liquefied Petroleum Gas (LPG) will now cost Rs 574.50.
The price cut of the non-subsidised LPG was effective from Wednesday midnight, said Indian Oil Corporation (IOC) in a statement.
“It may be noted that the price of non-subsidised LPG was reduced by Rs 100.50/cylinder earlier in July 2019 also. Considering this, the price of non-subsidised LPG cylinder has come down by Rs 163.00/cylinder cumulatively in two months,” said IOC.
Notably, consumers buy non-subsidised cooking gas after exhausting their quota of 12 cylinders of 14.2-kg each at subsidised rates. The government provides the subsidy amount directly in the bank accounts of the consumers. This subsidy amount depends on changes in the average international benchmark LPG rate and foreign exchange rate.
Earlier on July 1, the price of the non-subsidised LPG cylinders came down by over Rs 100 per 14.2 kg cylinder on the back of softening international rates. IOC noted, “As domestic LPG prices are subsidised by the Government, the effective price after subsidy to consumer will be Rs 494.35 per cylinder for the month of July 2019. The balance amount is borne as subsidy (Rs 142.65 per cylinder) by the central government and is being transferred to the bank account of LPG consumers after purchase and delivery of a refill.”
The price cut for July month came a month after LPG saw a rate hike of 3.65 per cent with effect from June 1. The Trinamool Congress took to the streets and protested against the Narendra Modi-led government over the hike.
Indian Oil is the country’s largest fuel retailer which supplies LPG under brand Indane. The government’s push to provide clean cooking fuel to every household has turned India into the world’s second-largest LPG consumer whose demand is projected to rise 34 per cent by 2025, noted Oil Secretary M M Kutty in the month of February this year.