LPG cylinder price cut by over ₹160 today. Check latest rates here

NEW DELHI : In the third consecutive rate cut, the price of LPG cylinders was reduced by ₹ 162.50 a unit in Delhi today. Oil marketing companies have enforced similar rate cuts in other parts of the country. In Delhi, the price of a 14.2 kg non-subsidised LPG (liquified petroleum gas) cylinder has been reduced from ₹ 744 to ₹ 581.50 with effect from today.

In Mumbai, LPG cylinder will cost ₹ 579, as compared to ₹ 714.50 earlier. In Kolkata, cooking gas fuel rate has been cut by ₹ 190 to ₹ 584.50. In Chennai, LPG cylinders will be sold at Rs569.50.

LPG cylinder rates, which are revised on the first day of every month, had been on an increasing mode from August last year before prices were cut in the last two months amid a slump in the global energy market.

Ever since the coronavirus-related lockdown began from March 25, panic buying of LPG cylinders have been reported in most parts of the country. Retailers have been emphasising that there is no shortage of LPG cylinders in the country as there is enough stockpile of the gas to meet local demand.

India's largest fuel retailer Indian Oil Corp. Ltd (IOC) said it has reported a 20% spike in sales in April.

The price of LPG cylinders in India is dependent primarily on two factors — the international benchmark rate of LPG and the exchange rate of US dollar and rupee.

Cooking gas is available only at market prices across the country but every household is entitled to 12 cylinders of 14.2 kg each at subsidised rates in a year. The subsidy is transferred directly to bank accounts.

After the lockdown was enforced, the Narendra Modi government has started a new Pradhan Mantri Garib Kalyan Yojana (PMGKY) to provide 3 LPG cylinders free to over 8 crore beneficiaries of the Pradhan Mantri Ujjawala Yojana (PMUY) from April to June this year.

Oil marketing companies have been transferring an advance equal to the retail selling price of one 14.2 kg refill or one 5 kg refill depending upon the type of package to the linked bank account of PMUY customers. The customers can use this advance money to take LPG refill.