Non-subsidised cooking gas has incurred a record price cut of Rs 162.50 per cylinder due to the slowdown in the oil and natural gas industry on a global scale.
It’s now three months on the trot that the reduction in LPG prices has taken effect which the users have also given up subsidies to buy. Just to clarify, this is the gas that households buy after exhausting their quota of 12 cylinders of 14.2 kilogram each at subsidised prices.
International prices of oil have hit record lows and the demand for the same has evaporated amid the lockdown due to COVID-19.
According to a price notification issued by state-owned oil firms, the current price of non-subsidised LPG cylinder in Delhi is Rs 581.50 per 14.2-kg which was Rs 744 earlier.
As per the official notification, in Mumbai, non-subsidised cooking gas price was reduced to Rs 579 per cylinder from Rs 714.50, while the price of 19-kg LPG cylinders, used by commercial establishment, has been cut to Rs 1,029.50 from Rs 1,285.
This is the steepest drop for LPG prices ever and beats the Rs 150.5 per cylinder price cut affected in January 2019. The cut comes on the back of Rs 61.50 per cylinder reduction in April and Rs 53 cut in March.
Based on benchmark fuel in the international market and also considering the exchange rate, the state-owned oil marketing companies revise the price of cooking gas on the first day of every month.
Cooking gas is available at market prices across the county, however, they are made available at subsidies below market rate only to a particular section.
(With inputs from PTI)
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