Non-subsidised LPG cooking gas to be cheaper by Rs 100.50

NEW DELHI: The price of LPG cylinders will go down by Rs. 100.50 from Monday, the Indian Oil Corporation said on Sunday. With this, the unsubsidised price of each domestic LPG cylinder will come down from Rs. 737.50 to Rs. 637.

According to a press release issued by Indian Oil, the decision to cut rates was taken in view of softening LPG (liquefied petroleum gas) prices in the international market and a favourable dollar-rupee exchange rate.

As domestic LPG prices are subsidised by the government, the effective price of each cylinder will come down to Rs. 494.35 per cylinder after the rate revision. The balance amount of Rs. 142.65 per cylinder "would be borne as a subsidy" by the central government and transferred to the consumer's bank account after the purchase of a refill, the release said.

Incidentally, the cut comes barely a month after LPG saw a price hike of 3.65 per cent with effect from June 1. According to Indian Oil, that amounted to an increase of Rs. 25 per cylinder as compared to the going rate the previous month.

At present, the government subsidises 12 cylinders of 14.2 kg each per household in a year. For any additional purchases, the consumer has to bear the market price. The extent of the subsidy varies from month to month, depending on changes in the average international benchmark LPG prices and foreign exchange rates.