LPG Cylinders get affordable turning out a new year gift to the consumers

NewsBharati    01-Jan-2019
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New Delhi, January 1: After the inconsiderable rate cuts in the fuel prices constituting petrol and diesel, now the consumers are now buoyant to assimilate the fact that LPG prices have been cut by Rs 5.91 per cylinder in the beginning of the week. A 14.2 kgs of subsidised cylinder will cost Rs 494.49 in the national capital as against the current price of Rs 500.90.
 
The prices of the non-subsidised LPG have also been slashed by a steep Rs 120.5 per cylinder. It will now cost Rs 689 per 14.2 kgs of cylinder in New Delhi against the earlier cost of Rs 809.5 each.
 
This being the second straight reduction of the LPG rates in the recent past, it is on 1st of December in 2018, that the same were reduced by Rs 6.52 per litre.
 

 
This fluctuation in the amount varies from month to month citing the changes in the average international benchmark LPG rate and foreign exchange rate. As the international rates uproar, the government provides a higher subsidy. And when they come down, subsidy is cut.
 
Similarly, with the fall in market price or non-subsidised LPG price, the tax incidence on subsidised cooking fuel has also come down, leading to the current price reduction.
 
"Accordingly, the upfront cash payment by the consumer of domestic LPG will also reduce by Rs 120.50 per cylinder. Domestic LPG consumer will now be required to make upfront cash payment of Rs 689 a cylinder in place of Rs 809.50 per cylinder", said the Indian Oil Corporation in relation.
 
“Subsidised cooking gas consumers will get Rs 194.01 per cylinder subsidy in their bank accounts for the month of January. The subsidy transfer in the customer's bank account has been reduced from Rs 433.66 in November and Rs 308.60 in December. “, it added further.