Prices of non-subsidised LPG cylinders have been significantly reduced by oil marketing companies (OMCs). A 14.2 kg Indane LPG cylinder will cost Rs 581.50 in Delhi, less by Rs 162.50 from Rs 744 in April. Similarly, the price of 14.2 kg Indane LPG cylinder has been cut by Rs 190 to Rs 584.50 in Kolkata whereas in Mumbai, it has been reduced by Rs 135.50 to Rs 579 and by Rs 192 to Rs 569.50 in Chennai, according to the official Indian Oil Corporation (IOC) website.
This, however, is not the first time that the LPG prices have been slashed as the OMCs generally revise the prices of LPG cylinders every month. LPG prices were previously revised on April 1, 2020. In February 2020, the LPG prices were at an all-time high. LPG prices stood at Rs 858 in Delhi, Rs 896 in Kolkata, Rs 829 in Mumbai and Rs 881 in Chennai in February 2020, according to the official IOC website. However, prices of LPG cylinders contracted in the couple of months following the historic fall in global crude oil market due to the novel coronavirus pandemic.
Oil marketing companies sell 14.2 kg cylinders to domestic households at the same price as the open market. The government, however, provides subsidies on 12 such cylinders to each household in a year. This subsidy is transferred directly to the bank accounts of the beneficiaries. Prices of LPG cylinders are determined according to the international benchmark rate of LPG and the exchange rate of US Dollar and Rupee.