Subsidised Cooking gas rates down by Rs. 6.52; non-subsidised see a major cut of Rs 133
The LPG price in India was slit by Rs 6.52 per cylinder on Friday. This recent decrease in the cooking gas price came on account of tax impact on the reduced market rate for the fuel.
A domestic subsidised gas cylinder of 14.2-Kg will cost around Rs 500.90 in Delhi as against Rs 509.42 price. The new price has been released by the country's largest fuel retailer, Indian Oil Corp (IOC).
IOC said non-subsidised or market priced LPG rates have been cut by a steep ₹133 per cylinder to reflect fall in international oil rates and strengthening of the rupee. It will now cost ₹809.50 per 14.2-kg bottle in Delhi.
The subsidised rates were last hiked by Rs 2.94 per cylinder with effect from November 1. This reduction in price has come after six month continuous hike since the month of June. Rates had almost gone up by ₹14.13 per cylinder before the price cut.
The LPG consumers buy the fuel at the market price and the government subsidises 12 cylinders of 14.2 kg each per househoulds in a year. The subsidised amount is transferred directly to the consumer's bank account.
Also, the subsidy amount is not consistent and depends on the changes in the average international benchmark LPG rate and foreign exchange rate.