New Delhi: Domestic cooking gas (LPG) price was cut by Rs 5.91 per cylinder Monday, the second straight reduction in a month due to tax impact on the reduced market rate of the fuel.
A 14.2-kg subsidised LPG cylinder will cost Rs 494.99 in the national capital from midnight tonight as against Rs 500.90 currently, Indian Oil Corp (IOC), the country's largest fuel retailer, said in a statement.
This is the second straight monthly reduction in LPG rate. On December 1, subsidised LPG price was cut by Rs 6.52 per bottle.
That price cut had come after six consecutive monthly hikes in rates since June. The two price reductions have mostly negated the Rs 14.13 per cylinder increase in rates between June and November.
IOC said non-subsidised or market priced LPG rates have been cut by a steep Rs 120.50 per cylinder "due to the falling price of LPG in the international market and strengthening of US dollar-rupee exchange rate."
It will now cost Rs 689 per 14.2-kg cylinder in Delhi.
On December 1, the price of non-subsidised LPG was cut by Rs 133 per bottle.
All LPG consumers have to buy the fuel at market price. The government, however, subsidises 12 cylinders of 14.2-kg each per households in a year by providing the subsidy amount directly in bank accounts of users.
When international rates move up, the government provides a higher subsidy. And when they come down, the subsidy is cut.