Fuel retailers revise prices of LPG cylinders every month
Starting from 1 April, the cost of domestic cooking gas will be reduced by ₹10, Indian Oil Corporation Limited said
In a relief to common man, the prices of Liquefied petroleum gas (LPG) cylinder will become cheaper from this month. Starting from 1 April, the cost of domestic cooking gas will be reduced by ₹10, Indian Oil Corporation Limited said on Wednesday. In Delhi and Mumbai, a 14.2 kg LPG cylinder will cost around ₹809. A LPG cylinder will now be available at ₹835.50 in Kolkata. In Chennai, the prices of LPG cylinders will be lowered to ₹825.
Fuel retailers revise prices of LPG cylinders every month. The LPG prices had been increased by ₹125 per cylinder in recent weeks. 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.
After a record increase in rates, the prices of LPG cylinder dropped as international oil prices had softened. International oil prices fell on the prospect of speedy recovery in consumption getting clouded by the second wave of COVID-19 cases, which has forced renewed lockdowns in parts of Europe.
"Due to growing worries about rising Covid-19 cases in Europe and Asia and concerns over the side effects of the vaccine, prices of crude oil and petroleum product in the international market softened in the second fortnight of March 2021," Indian Oil Corporation said in a statement.
"International oil prices, which are the benchmark for deciding retail rates, have softened over the past few days. Though there had been some firming up of prices on Tuesday, overall the trend has been of a decline, which should reflect in domestic retail rates as well," a top official told PTI.
LPG price had touched a record high of ₹939 per cylinder in November 2018.
Every household is entitled to 12 cylinders of 14.2 kg each at subsidised rates in a year. If anyone needs more than 12 LPG cylinders a year, he or she needs to purchase it at market price. Under PAHAL (Direct Benefit Transfer of LPG) scheme, consumers get LPG cylinders at a subsidised rate.
Petrol and diesel prices are also likely to fall in the near term. "The trend indicates that there will be no increase in prices in the near term. In fact, we may see a further reduction," official said, according to PTI.