Amid the nationwide coronavirus lockdown, the government has cut the prices of non-subsidised LPG cylinders (14.2kg) on Wednesday, in line with a huge fall in global crude. As a result, the prices have been reduced by Rs 65 per cylinder, according to the Indian Oil Corporation (IOC)'s monthly revision issued on Wednesday.
This is the second consecutive fall in cylinder prices in the last two months. Consequently, a 14.2 kg non-subsidised LPG will now cost Rs 744 in Delhi, while in Mumbai, the price is at Rs 714.50. An LPG cylinder will cost Rs 774.5 in Kolkata and Rs 761.5 in Chennai.
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.
The price cuts have come as a much needed breather for Indian households amid the nationwide lockdowns. At the same time, Bharat Petroleum, IOC and the ministry of petroleum and natural gas have allayed fears of LPG cylinder shortage. "Our domestic oil and gas companies have shown remarkable resilience amid this global crisis in maintaining domestic crude production (in March) at 6,45,958 bopd compared to Feb ‘20 average of 6,34,538. Indian refineries continue to operate during the ongoing lockdown to provide fuel and enable supply of essential petroleum products to several sectors of the economy which are vital now, especially those in transportation of goods, power generation and health services," the ministry tweeted on Tuesday.
"We have ample stock of petroleum products. All Indian Oil locations and touch points are functional. Kindly avoid panic buying," IOC Chairman Sanjiv Singh said on Sunday.
In India, every household is entitled to 12 cylinders of 14.2 kg each at subsidised rates in a year. LPG price for cooking for consumers under PAHAL (Direct Benefit Transfer of LPG) is subsidised by the Union Government and the subsidy quantum given to them is the difference between the market-determined price and the subsidised price.
Any requirement beyond that is to be purchased at market price.
In March, the government reduced the price of non-subsidised domestic LPG cylinders (14.2 kg) by an average Rs 53. In February, the LPG price of non-subsidised cylinders was increased by about Rs 150.
Crude oil benchmarks opened the month mixed on Wednesday, following their biggest-ever quarterly and monthly losses, overshadowed by fears of global oversupply as data showed a bigger-than-expected rise in inventories in the United States.
