New Delhi: Reflecting a fall in international oil prices and the strengthening of the rupee against the US dollar, the price of domestic cooking gas or LPG cylinders have been reduced from this month. The price of a non-subsidised LPG cylinder of 14.2 kg has been reduced by about ₹ 130 while that of a subsidised cylinder has been cut by about ₹ 6.5.
After subsidy, the LPG cylinder costs ₹ 500.9 in Delhi, ₹ 504.12 in Kolkata, ₹ 498.57 in Mumbai and ₹ 488.85 in Chennai. Without subsidy, the LPG cylinder comes to you at a cost of ₹ 809.50 in Delhi, ₹ 837 in Kolkata, ₹ 780.50 in Mumbai and ₹ 826.50 in Chennai.
Any change in international oil prices is reflected only in the non-subsidised category as the government absorbs any increase in LPG price for the subsidised segment. Any reduction or increase in price is done only to reflect a subsequent change in GST which is calculated at the market rate. The tax component is not subsidised by the government.
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The price reduction from this month comes after 6 consecutive monthly hikes since June when the price had gone up by a cumulative of ₹ 14.13 per cylinder.
The current price reduction in international markets has also reduced subsidy burden on the exchequer.
Subsidised cooking gas consumers will get ₹ 308.60 per cylinder subsidy in their bank accounts for the month of December. The subsidy transfer in the customer’s bank account has been reduced from ₹ 433.66 in November.
Price break-up of LPG cylinder:
A 14.2 kg LPG cylinder comes at a cost price of ₹ 581.79 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.