LPG Rates: A month after cutting the price of LPG (liquefied petroleum gas) cylinders by over Rs 100, state-run fuel retailers today affected another big price cut.

The price of non-subsidised LPG cooking gas will be reduced by Rs 62.50 per 14.2 kg cylinder in New Delhi, and Rs 62 in Mumbai and Chennai according to a statement from Indian Oil Corporation, the country’s largest fuel retailer.

Indian Oil – which supplies LPG under brand Indane – said the decision was based on LPG prices in the international market and the rupee-dollar exchange rate.

The new rates are with effect from today as LPG prices are revised on the first day of every month. The price cut comes on the back of the LPG price cut in the international market and the dollar-rupee exchange rate.

LPG Rates: HIGHLIGHTS



  • The price of non-subsidised LPG cylinder has come down by Rs.163.00 per cylinder cumulatively in two months.
  • This is the second reduction in cooking gas (LPG) price in the last two months.
  • Softening international rates is one of the reasons behind the fresh reduction in rates.

“Domestic LPG consumers will now be required to make an upfront cash payment of Rs.574.50/- only per 14.2 Kg cylinder in August 2019 in place of Rs.637.00/- per cylinder for July 2019,” Indian Oil Corporation said in its statement on Wednesday.

The price of non-subsidised LPG has been reduced by Rs. 163.00 per cylinder cumulatively in two months, Indian Oil Corporation said. A non-subsidised LPG Cylinder now costs Rs 574.50 in Delhi, Rs 601 in Kolkata, Rs 546.50 in Mumbai and Rs 590.50 in Chennai.

All LPG consumers have to buy the fuel at market price. The government, however, subsidizes 12 cylinders of 14.2kg 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 average international benchmark LPG rates and foreign exchange rate. When international rates move up, the government provides a higher subsidy.

But as per tax rules, GST on LPG has to be calculated at the market rate of the fuel. The government may choose to subsidize a part of the price, but tax will have to be paid at market rates. This leads to an increase or decrease in the price of subsidized cylinders.