Good news! LPG cylinder price reduced by over Rs 50: Here is what it will cost now

In what comes as a good news for the common man, the non-subsidised LPG cylinder price has been cut with effect from March 1, 2020. The decision has been taken in line with a decline in the global rates. The latest price cut comes into effect from March 1, 2020. In Delhi, a 14.2 kg non-subsidised LPG cylinder which used to cost Rs 858 in the previous month, will now cost Rs 805. According to the revised prices, an LPG cylinder in Kolkata will cost Rs 839, in Mumbai Rs 776.5 and, in Chennai Rs 826.

Last month, there was a sharp hike of Rs 145 in non-subsidised LPG cylinder price in New Delhi. Prices of LPG cylinders are reviewed by fuel companies on a monthly basis. The prices of LPG cylinders are primarily dependent on two factors - the international benchmark rate of LPG and the exchange rate of the US dollar and rupee.

There government had also increased its subsidy on a 14.2 kg LPG cylinder for domestic users from Rs 153.86 to Rs 291.48 per cylinder, a release by the Ministry of Petroleum & Natural Gas had said. LPG price for cooking for consumers under PAHAL (DBTL) is subsidized by the Government of India.

WATCH | Zee Business TV LIVE Streaming Online -

For the Pradhan Mantri Ujjwala Yojana (PMUY) consumers, the subsidy borne by Government has increased from Rs 174.86 per cylinder to Rs 312.48 per cylinder, the release said.    

"The impact of price hike is mostly borne by the Government by enhancing the subsidy for subsidized and PMUY consumers," it said. The subsidy quantum given to the PAHAL consumers by way of Direct Benefit Transfer is the difference between the market-determined price and the subsidized price.