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Daily News Analysis

Rates of Non-subsidized LPG cylinders slashed

The price of non-subsidised liquefied petroleum gas, or market-priced cooking gas, on Wednesday was cut by Rs 61.50 per cylinder in line with a fall in benchmark international rates. The price of non-subsidised LPG, which a domestic household consumer buys after exhausting his quota of 12 14.2-kg cylinders at below-market price rates, was cut to Rs 744 in Delhi. This is the second reduction in rates since March, according to a price notification issued by state-owned oil firms. On March 1, non-subsidized LPG price was cut by Rs 53 per14.2 kg cylinder. The two reductions have not yet brought LPG rate to pre-February hike levels.

Key Highlights

  • Cooking gas is available only at market prices across the country. Eligible users, however, get subsidy in their bank account for buying LPG cylinders at subsidised rates.

  • Domestic LPG users are entitled to buy 12 bottles of 14.2 kg each at subsidised rates in a year. Price of 19-kg LPG cylinders, used by commercial establishments, came down to Rs 1,285 from Rs 1,381.50, the notification said.

  • The recent price cut follows the huge fall in global crude oil prices over the last few weeks, due to the coronavirus pandemic. The pandemic has taken over 42,300 lives so far, and infected more than 8,60,000 people, according to an estimate by Johns Hopkins University.

  • Oil prices registered their worst quarterly performance on record over the first three months of the year ending March 31.

  • Petrol continues to sell at Rs 69.59 per litre in Delhi and diesel at Rs 62.29 a litre at a time when crude oil prices have reduced to $23 per barrel in the world market. A barrel is equivalent to 159 litres.

  • Petrol prices are at Rs 75.30 per litre in Mumbai, while it is Rs 72.29 a litre in Kolkata and Rs 72.28 a litre in Chennai.

  • Diesel is currently selling at Rs 65.71 in Chennai, Rs 64.62 per litre in Kolkata and Rs 65.21 per litre in Mumbai.

SOURCE: Economic Times, India Today

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