LPG cylinders will cost cheaper by Rs 100.50 from today, the Indian Oil Corporation (IOC) said in its release. The non-subsidised LPG gas cylinders will be available for Rs 637 per cylinder instead of earlier price of Rs 737.50. The move will bring major relief to households who use LPG cylinders across the country.
According to IOC's press release, the decision to cut LPG cylinder rates was taken amid softening LPG rates in the international market and a favourable dollar-rupee exchange rate. Furthermore, subsidised LPG rates have come down to Rs 494.35 per cylinder after the rate revision. The release also said that the balance amount of Rs 142.35 per cylinder "would be borne as subsidy" by the central government and the same will be transferred to the customer's bank account after the purchase of a refill.
The move comes a month after the prices of LPG were hiked by up to Rs 25 (14.2 kilograms) with effect from June 1. This was the fourth consecutive price hike in this calendar year. IOC had also jacked up the non-subsidised LPG prices in May by Rs 6 per cylinder.
Following this, the Modi government was slammed by the opposition. West Bengal Chief Minister Mamata Banerjee-led Trinamool Congress had also threatened to go on a statewide protest to oppose the move. "Why have the LPG cylinders prices been hiked, once the election process was over?" Mamata Banerjee had asked the Centre. "We condemn the gas price hike and will take out rallies in every block," she said.
The oil marketing companies review LPG prices on a monthly basis based on international crude oil and rupee-dollar foreign exchange rates.
At present, the government subsidises 12 LPG cylinders of 14.2 kilograms each per household in a year. It provides the subsidy amount directly to the consumer's bank account. The consumer has to bear the market price for additional LPG cylinders in a year. This subsidy amount varies from month to month depending on the changes in the average international benchmark LPG and foreign exchange rates.