Offering some relief to the common man, the prices of non-subsidised Liquefied petroleum gas (LPG) cylinder will go down from April. Starting from 1 April, the cost of domestic cooking gas will be reduced by Rs 10, Indian Oil Corporation Limited said on Wednesday.
After raising cooking gas prices by Rs 125 per cylinder last month, state-owned oil firms announced a cut of Rs 10 per cylinder in LPG rates on Wednesday with softening international oil prices.
Prices of crude oil and petroleum products in the international market have been on a constant uptrend since November 2020. As India is largely import-dependent on crude oil and the prices are market-linked, the increase in international prices resulted in increase in domestic price of petroleum products.
However, due to growing worries about rising Covid-19 cases in Europe and Asia and concerns over the side effects of vaccine, prices of crude oil and petroleum product in the international market softened in the second fortnight of March 2021.
Accordingly, Oil Companies have reduced the Retail Selling Price (RSP) of Diesel and Petrol by 60 paise per litre and 61 paise per litre respectively at Delhi market over the past few days. There was a corresponding reduction in prices at other markets during this period. This reduction has come as a relief to motorists and transporters across India, said IOCL.
Further, with a view to give relief to domestic LPG consumers, the price of Domestic LPG cylinder has been reduced by Rs 10/cylinder, it added.
After the latest revision, in Delhi and Mumbai, a 14.2 kg non-subsidised LPG cylinder will cost around Rs 809 from April. An LPG cylinder will now be available at Rs 835.50 in Kolkata from Thursday. In Chennai, the prices of LPG cylinders will be lowered to Rs 825.
Remember that fuel retailers revise prices of LPG cylinders every month. 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. LPG price had touched a record high of Rs 939 per cylinder in November 2018.
After a record increase in rates, the prices of LPG cylinder dropped as international oil prices had softened. International oil prices fell on the prospect of speedy recovery in consumption getting clouded by the second wave of COVID-19 cases, which has forced renewed lockdowns in parts of Europe. PTI