Domestic cooking gas (LPG) price Friday was cut by ₹6.52 per cylinder on account of tax impact on the reduced market rate for the fuel. A 14.2-kg subsidised LPG cylinder will cost ₹500.90 in the national capital from midnight tonight as against ₹507.42 currently, Indian Oil Corp (IOC), the country’s largest fuel retailer, said in a statement.
The price reduction comes soon after six consecutive monthly hikes in rates since June. Prior to this price cut, rates had gone up by ₹14.13 per cylinder since then. Subsidised LPG rates were last hiked by ₹2.94 per cylinder with effect from November 1. 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.
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. This subsidy amount varies from month to month depending on the changes in the average international benchmark LPG rate and foreign exchange rate.