Modi’s New Year Gift: Govt Announces LPG Price Cut

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New Delhi: Government cuts LPG price by Rs. 5.91 per cylinder. Giving a new year gift to the people, the government has announced major reduction in LPG prices. The price of subsidised LPG cylinder has been cut by Rs 5.91, while the rate of non-subsidised LPG cylinder has been reduced by Rs 120.50, said Indian Oil Corporation.

A 14.2-kg subsidised LPG cylinder will cost Rs 494.99 in the national capital from midnight tonight as against Rs 500.90 currently, Indian Oil Corp (IOC), the country’s largest fuel retailer, said in a statement. This is the second straight monthly reduction in LPG rate. On December 1, subsidised LPG price was cut by Rs 6.52 per bottle, after six consecutive monthly hikes in rates.

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The two price reductions have mostly negated the Rs 14.13 per cylinder increase in rates between June and November. IOC said non-subsidised or market priced LPG rates have been cut by a steep Rs 120.50 per cylinder “due to fall in price of LPG in international market and strengthening of US dollar-rupee exchange rate.”

All LPG consumers have to buy the fuel at market price. The government, however, subsidises 12 cylinders of 14.2-kg 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 the average international benchmark LPG rate and foreign exchange rate.