Cooking gas cylinders will be cheaper by Rs. 100.50 from today, the Indian Oil Corporation has declared, providing major relief to households across the country. With this, the unsubsidized price of each domestic LPG cylinder will be Rs. 637 instead of Rs. 737.50.
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 subsidized by the government, the effective price has come down to Rs. 494.35 per cylinder with this rate revision. The balance amount of Rs. 142.65 per cylinder “would be borne as subsidy” by the central government and transferred to the consumer’s bank account after the purchase of a refill, the release said.
The cut comes exactly 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 previous month.
At present, the government subsidizes 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 subsidy varies from month to month, depending on changes in the average international benchmark LPG prices and foreign exchange rates.