NEW DELHI: Market-priced unsubsidized LPG or cooking gas prices fell by a record Rs 162.50 per cylinder on Friday, in line with falling international benchmark rates.
This is the third consecutive monthly reduction in unsubsidized LPG rates, that users who have given up buying subsidies. In addition, this is the gas that domestic domestic consumers buy after exhausting their quota of 12 cylinders of 14.2 kg each at subsidized prices.
The coronavirus outbreak and the blockades imposed by nations to stop its spread have evaporated demand for oil, causing the collapse of international oil prices.
Coronavirus outbreak – live updates
Benchmark Brent crude last month fell to a two-decade low of $ 15.98 a barrel, but has since recovered to $ 26.43 a barrel on Friday.
Unsubsidized LPG now costs Rs 581.50 per 14.2 kg cylinder in Delhi, down from Rs 744 as of Thursday, according to a price notice issued by state oil companies.
This is the largest reduction in unsubsidized cooking gas prices. Exceeds Rs 150.5 per cylinder cut made in January 2019.
In addition, this is the third consecutive monthly reduction in price due to the fall in international rates. The cut comes at the back of Rs 61.50 for cylinder reduction in April and Rs 53 in March.
In three reductions, the price of unsubsidized cooking gas was reduced by Rs 277 per 14.2 kg cylinder. That more than denies the massive increase of Rs 144.5 per cylinder in the rates introduced in February.
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State oil trading companies review the price of cooking gas on the first day of each month based on the average of the reference fuel in the international market and the exchange rate.
Cooking gas is only available at market price throughout the country. However, eligible users get a subsidy in their bank accounts for buying LPG cylinders at lower rates than the market.
In Mumbai, the price of unsubsidized cooking gas dropped to Rs 579 per cylinder from Rs 714.50.
National LPG users have the right to buy 12 bottles of 14.2 kg each at subsidized prices in one year.
The price of 19 kg LPG cylinders, used by a commercial establishment, was reduced to Rs 1,029.50 from Rs 1,285, according to the notification.
On video: Price of unsubsidized LPG cylinders cut by Rs 162
This is the third consecutive monthly reduction in unsubsidized LPG rates, that users who have given up buying subsidies. In addition, this is the gas that domestic domestic consumers buy after exhausting their quota of 12 cylinders of 14.2 kg each at subsidized prices.
The coronavirus outbreak and the blockades imposed by nations to stop its spread have evaporated demand for oil, causing the collapse of international oil prices.
Coronavirus outbreak – live updates
Benchmark Brent crude last month fell to a two-decade low of $ 15.98 a barrel, but has since recovered to $ 26.43 a barrel on Friday.
Unsubsidized LPG now costs Rs 581.50 per 14.2 kg cylinder in Delhi, down from Rs 744 as of Thursday, according to a price notice issued by state oil companies.
This is the largest reduction in unsubsidized cooking gas prices. Exceeds Rs 150.5 per cylinder cut made in January 2019.
In addition, this is the third consecutive monthly reduction in price due to the fall in international rates. The cut comes at the back of Rs 61.50 for cylinder reduction in April and Rs 53 in March.
In three reductions, the price of unsubsidized cooking gas was reduced by Rs 277 per 14.2 kg cylinder. That more than denies the massive increase of Rs 144.5 per cylinder in the rates introduced in February.
More about Covid-19
Coronavirus pandemic: full coverage
21-day closure: what will remain open and what will not
How to quarantine at home
Trust the newspaper for your verified daily news
State oil trading companies review the price of cooking gas on the first day of each month based on the average of the reference fuel in the international market and the exchange rate.
Cooking gas is only available at market price throughout the country. However, eligible users get a subsidy in their bank accounts for buying LPG cylinders at lower rates than the market.
In Mumbai, the price of unsubsidized cooking gas dropped to Rs 579 per cylinder from Rs 714.50.
National LPG users have the right to buy 12 bottles of 14.2 kg each at subsidized prices in one year.
The price of 19 kg LPG cylinders, used by a commercial establishment, was reduced to Rs 1,029.50 from Rs 1,285, according to the notification.
On video: Price of unsubsidized LPG cylinders cut by Rs 162
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