New Delhi: On the back of lowering of international benchmark LPG rates and a strengthening rupee against the US dollar, fuel retailers have reduced the prices of domestic cooking gas cylinders from today. In Delhi, the price of a non-subsidised 14.2-kg LPG cylinder has decreased by ₹ 120.50 while that of subsidised one has fallen by ₹ 5.91 per cylinder.
Today’s cut is the second straight reduction in a month’s time. On December 1, subsidised LPG price was cut by ₹ 6.52 per cylinder. With effect from 1 January, 2019, a subsidised LPG cylinder costs ₹ 494.99 in Delhi, ₹ 498.09 in Kolkata, ₹ 492.66 in Mumbai and ₹ 482.88 in Chennai. The non-subsidised price of LPG cylinder is ₹ 689 in Delhi, ₹ 714 in Kolkata, ₹ 660 in Mumbai and ₹ 704.50 in Chennai. The prices are of Indane.
The reduction in subsidised LPG cylinder price is on account of GST impact on decrease in price of non-subsidised LPG. “The balance amount is borne as subsidy (Rs 194.01 per cylinder) by the central government and is being transferred to the bank account of LPG consumers after purchase and delivery of a refill," Indian Oil said in a statement.
Also read: Over 70% Indians to get access to city gas connection
LPG prices were hiked every month for six months from June to November with a cumulative hike of ₹ 14.13 per cylinder.
Price break-up chart shows that a 14.2-kg LPG cylinder comes at a cost price of ₹ 467.17 including import price of LPG at Arab Gulf, ocean freight and import charges.
Then comes the storage and distribution cost of ₹ 9.57, bottling charges of ₹ 20.58, ₹ 18.11 charges of cylinder cost and ₹ 31.47 of inland freight. The retail selling price is computed after taking into account other charges like delivery cost, GST and distributors’ commission.