Amid the nationwide coronavirus lockdown, the price of non-subsidised LPG cylinders were cut today. This is the second consecutive fall in cylinder prices in last two months. In Delhi, a 14.2 kg non-subsidised LPG will now cost ₹744. This is a reduction of ₹61 per cylinder from the previous revision done on March 1. In Mumbai, a non-subsidised LPG cylinder will now be available at ₹714.50 as compared to ₹776.50 earlier.
After the today’s price revision, the LPG cylinder will cost ₹774.5 in Kolkata and ₹761.5 in Chennai as compared to ₹839.50 and ₹776.50 earlier.
Fuel retailers revise prices of LPG cylinders every month. 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.
Every household is entitled to 12 cylinders of 14.2 kg each at subsidised rates in a year. Any requirement beyond that is to be purchased at market price. Under PAHAL (Direct Benefit Transfer of LPG) scheme, consumers get LPG cylinders at a subsidised rate.
Last month, the government cut natural gas prices by a steep 26% to its lowest rate since the pricing was made formula-driven in 2014, a move that is likely to translate into lower CNG and piped cooking gas prices.
Prices of natural gas, which is used to produce fertiliser and generate electricity and is also converted into CNG for use in automobiles as fuel and cooking gas for households, are set every six months – on April 1 and October 1 each year.
The bulk of India’s existing gas production will be priced at $2.39 per million British thermal unit for the six-month period beginning April 1, down from $3.23 as of now. This will be the second reduction in six months to the lowest since 2014.
The price of gas produced from difficult fields such as deep sea too has been cut to $5.61 from $8.43 per mmBtu now.