Domestic cooking gas (LPG) price was cut by Rs 5.91 per cylinder Monday, the second straight reduction in a month's time due to tax impact on reduced market rate of the fuel.
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.
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."
It will now cost Rs 689 per 14.2-kg cylinder in Delhi.
On December 1, price of non-subsidised LPG was cut by Rs 133 per bottle.
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.
When international rates move up, the government provides a higher subsidy. And when they come down, subsidy is cut.