LPG prices cut by ₹10, new cylinder rates now ₹809 for both subsidised & standard users

Amidst the continuous price hike of petrol, diesel, and LPG, the Indian Oil Corporation on Wednesday announced a Rs 10 per cylinder cut in LPG rates on softening international oil prices. The price of cooking gas was raised by Rs 125 per cylinder last month. Indian Oil Corporation (IOC) in a statement announced that a 14.2-kg LPG cylinder both for subsidised and market price users will cost Rs 809 from April 1 as against Rs 819 currently. 

LPG prices were hiked first by Rs 25 per cylinder on February 4, followed by a Rs 50 per cylinder increase on February 15 and a Rs 25 raise on February 25 and March 1.

The IOC in its statement said, "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 an increase in the domestic price of petroleum products."

"Accordingly, oil companies have reduced the retail selling price 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," added the IOC. 

"Further, with a view to give relief to domestic LPG consumers, the price of domestic LPG cylinder has been reduced by Rs 10 per cylinder from Rs 819 to Rs 809 per cylinder at Delhi effective April 1, 2021. The same reduction has been carried out in other markets," it said.

The government gives a small subsidy to select customers on the LPG. However, this subsidy has been removed in metros and major cities through successive price increases over the past couple of years. Therefore, in places like Delhi, there is no subsidy paid to customers since May 2020 and all LPG users pay the market price, which has now been reduced to Rs 809.

As per an official of IOC, a small subsidy is paid to customers in remote and distant areas to make up for the higher price arising from freight charges.

After three reductions in one week, petrol now costs Rs 90.56 per litre in Delhi, down from a record high of Rs 91.17, and a litre of diesel comes for Rs 80.87. Since the government raised excise duty in March last year, prices had gone up by a record Rs 21.58 per litre for petrol  Diesel prices had increased by Rs 19.18 a litre. The IOC also said that the LPG penetration in India has improved from 55 percent in 2014 to more than 99 percent today. 

Padyatra against LPG price hike

The increase in prices of LPG also took a centre stage at the ongoing West Bengal elections. West Bengal Chief Minister Mamata Banerjee also lead a 'padyatra' to protest against the steep LPG price hike. Claiming that the LPG cylinders would soon be beyond the reach of the common man, TMC supremo Mamata Banerjee said, "We need to organise massive demonstrations to make our voices heard."

Meanwhile, the second phase of polling is going on in West Bengal with the most intense poll battle between West Bengal CM Mamata Banerjee and her ex-confidante Suvendu Adhikari in high-profile constituency Nandigram.

(With Inputs: PTI)

(Image Credits: PTI)