NEW DELHI: State-run fuel retailers on Friday slashed prices of liquefied petroleum gas (LPG) used for commercial purposes by ₹39.50 per 19-kg cylinder as fuel rates fell in the international markets.
Now a non-subsidised 19-kg commercial gas cylinder used in hotels, restaurants and for industrial applications will cost ₹1,757 in Delhi, ₹1,868.50 in Kolkata, ₹1,710 in Mumbai and ₹1,929 in Chennai, according to latest pricing data of Indian Oil Corporation (IOC). Prices of the fuel vary from place to place because of differences in local levies.
While prices of subsidised 14.2-kg LPG cylinders (used by households for cooking) remained unchanged, the international fall in the price of the fuel will proportionately reduce government’s subsidy burden. Subsidised 14.2-kg LPG cylinders are sold at ₹903 each in New Delhi for general customers and the same is available for ₹603 per cylinder to poor households covered under the Pradhan Mantri Ujjwala Yojana (PMUY).
The Union cabinet chaired by Prime Minister Narendra Modi on August 29 slashed cooking gas price by ₹200 per 14.2-kg cylinder for all 316.4 million customers, besides continuing the ₹200 per refill subsidy to over 96 million poor under the Ujjwala yojana.
{{/usCountry}}The Union cabinet chaired by Prime Minister Narendra Modi on August 29 slashed cooking gas price by ₹200 per 14.2-kg cylinder for all 316.4 million customers, besides continuing the ₹200 per refill subsidy to over 96 million poor under the Ujjwala yojana.
{{/usCountry}}Since May 21, 2022, the government had been providing a budgetary support for targeted subsidy of ₹200 per 14.2 kg LPG cylinder for PMUY beneficiaries for up to 12 refills a year for years 2022-23 and 2023-24.
Later, with effect from October 5, 2023, the government raised the amount of targeted subsidy to ₹300 per 14.2-kg LPG cylinder for all PMUY beneficiaries.
“India imports more than 60% of its domestic LPG consumption. Price of LPG in the country is linked to its price in the international market. Government continues to modulate the effective price to consumer for domestic LPG,” minister of state for petroleum Rameswar Teli told the Lok Sabha on December 14.
“During the period 2020-21 to 2022-23, the average Saudi CP (international benchmark for LPG pricing) went up from $415 per MT to $712 per MT. However, the increase in the international prices was not fully passed on to the customers,” he said.