LPG gas cylinder price: Big savings in kitchen budget! Gas prices cut by Rs 61

A big relief for the public has been provided in the new financial year starting today. The government has effected a cut in LPG gas cylinder price and the same is over Rs 61. The cost of a 14.2 kg non-subsidised cylinder in Delhi now is Rs 744. Earlier the cost of same cylinder was Rs 805.50. Which means the price has been cut by Rs 61.50.

The nationwide lockdown in the country till 14 April has reduced the demand for LPG, petrol & diesel and electricity by a significant amount.

As per the information available on Indane gas website, the cost of a 14.2 kg non-subsidised cylinder in Kolkata now is Rs 774.50,  in Mumbai it is Rs 714.50 and in Chennai it is Rs 761.50 which was earlier Rs 839.50, Rs 776.50 and Rs 826.  

Meanwhile, the cost of 19 kg commercial cylinder has been reduced by Rs 96. The cost of a commercial cylinder in Delhi is RS 1285 while in Chennai it is Rs 1402.The price of a 5 Kg cylinder has also been reduced by Rs 21.50 and is now at Rs 286.50.

Zee Business had earlier indicated that the prices of domestic LPG cylinders could go down from 1 April as the demand for crude oil has come down significantly owing to the global lockdown. It is the lowest in last 17 years. The price of crude oil in US' West Texas Intermediate is down by 5.3% at USD 20 per barrel. The Brent crude has come down by 6.5 per cent at USD 23 per barrel. The fall in crude oil prices has a direct bearing on the prices of petroleum products like gas, diesel and petrol.

The price of oil is reviewed every six month. The price of gas has been on the rise in the last two years, which is now been slashed significantly. The market experts are of the view that the domestic gas prices will come down from USD 3.23 to USD 2.48/unit.

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A look at gas prices 
-- The new prices will be implemented from 1 April
-- The prices can come down at a three year low
-- Prices likely be slashed at 6 year high
-- The October 2019 price cut was a first in two years
-- Prices were increased four times before this
-- Gas price formula implemented on 1 November 2014
- On 1 October 2016, gas price was USD 2.5/unit
-- On 1 October 2019 gas price was USD 3.23/unit