In the third consecutive rate cut, the price of LPG cylinders was reduced by Rs162.50 a unit in Delhi today. Oil marketing companies have enforced similar rate cuts in other parts of the country. In Delhi, the price of a 14.2 kg non-subsidised LPG (liquified petroleum gas) cylinder has been reduced from Rs 744 to Rs 581.50 with effect from today.
In Mumbai, LPG cylinder will cost Rs 579, as compared to Rs 714.50 earlier. In Kolkata, cooking gas fuel rate has been cut by Rs 190 to Rs 584.50. In Chennai, LPG cylinders will be sold at Rs 569.50. LPG cylinder rates, which are revised on the first day of every month, had been on an increasing mode from August last year before prices were cut in the last two months amid a slump in the global energy market.
Ever since the coronavirus-related lockdown began from March 25, panic buying of LPG cylinders have been reported in most parts of the country. Retailers have been emphasising that there is no shortage of LPG cylinders in the country as there is enough stockpile of the gas to meet local demand.
India’s largest fuel retailer Indian Oil Corp. Ltd (IOC) said it has reported a 20 per cent spike in sales in April. 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. Cooking gas is available only at market prices across the country but every household is entitled to 12 cylinders of 14.2 kg each at subsidised rates in a year. The subsidy is transferred directly to bank accounts.
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