Good news! Prices of non-subsidised LPG gas cylinder reduced by over Rs 150

In what comes as a relief for common man, prices of non-subsidised LPG (liquified petroleum gas), which is used for cooking, have been reduced. After the latest cut, you will have to pay Rs 150 less per cylinder in major cities of the country. The rate cut comes due to the fall in international crude prices. The new rates will come into effect from May 1. 

According to Indian Oil Corporation, in the national capital Delhi, non-subsidised LPG cylinder having 14.2 kg gas was priced at Rs 581.50, a sharp fall of Rs 162.50 per cylinder from Rs 744 earlier. With this revision in prices, LPG became cheaper for the third consecutive month.

In Mumbai, LPG cylinder now costs Rs 579, as compared to Rs 714.50 earlier. In Kolkata, citizens now have to pay Rs 190 less for every 14.2 kg LPG cylinder as price was cut to Rs 584.50 from Rs 774.5 earlier. In Chennai, LPG cylinders will be sold at Rs 569.50 as compared to Rs 761.5 previously.

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For those unaware, customers have the option to buy 12 subsidised cylinders of 14.2 kg in a year to each household by transferring the subsidy amount directly to their linked bank accounts. Once the quota of 12 cylinders has exhausted, the consumers have the option to buy the non-subsidised cylinders. 

The outbreak of coronavirus and the lockdowns imposed by nations to curb its spread has evaporated demand for oil, sending international oil prices crashing. Benchmark Brent crude oil last month dropped to a two-decade low of USD 15.98 a barrel, but has rebounded since to USD 26.43 a barrel on Friday.

State-owned oil marketing companies revise the price of cooking gas on the first day of every month based on average of benchmark fuel in the international market and foreign exchange rate. Cooking gas is available only at market price across the country. Eligible users, however, get a subsidy in their bank accounts for buying LPG cylinders at below-market rates.