NEW DELHI :
State-run fuel retailers have decreased the price of LPG cylinders by over ₹100 per cylinder for this month. Indian Oil announced that the non-subsidised price of Indane in metros will be ₹637 per 14.2 kg LPG cylinder. Last month, the price was ₹737.50 per cylinder.
In Mumbai, non-subsidised LPG cylinders are priced at ₹608.50, Chennai ₹652.50 and Kolkata ₹662.50.
In the subsidised category, LPG cylinders now cost ₹494.35, down by ₹3, in New Delhi. In Mumbai, a subsidised LPG cylinder costs ₹497.37, Chennai ₹482.23 and Kolkata ₹497.47.
All LPG consumers have to buy the fuel at market price. The government, however, subsidizes 12 cylinders of 14.2kg each per households in a year by providing the subsidy amount directly in bank accounts of users.
This subsidy amount varies from month to month depending on the changes in average international benchmark LPG rate and foreign exchange rate. When international rates move up, the government provides a higher subsidy. But as per tax rules, GST on LPG has to be calculated at the market rate of the fuel. The government may choose to subsidize a part of the price, but tax will have to be paid at market rates. This leads to an increase or decrease in the price of subsidised cylinders.
The rate cut is in tune with softening international benchmark rates for LPG and US dollar-rupee exchange rate. Oil companies change LPG prices once at the beginning of every month.