NEW DELHI: Household cooking gas refills, commonly known as LPG cylinders, will become cheaper by Rs10 from tomorrow as a result of recent softening in the fuel’s international rate.
According to state-owned IndianOil, the country’s largest fuel retailer, a 14.2 kg domestic LPG cylinder will cost about Rs 809 from April 1 in Delhi and Mumbai. In Kolkata, a refill will cost Rs 835.50 and Rs 825 in Chennai.
This is the first reduction in four months. Refill prices had gone up cumulatively by Rs 175 since December. The prices were raised four times, totalling Rs 125, since February-end. The prices were hiked first by Rs 25 per cylinder on February 4, followed by Rs 50 on February 15, Rs 25 on February 25 and again by Rs 25 on March 2.
Consumers have to pay the market price and the government is supposed to give subsidy to eligible domestic consumers. But successive increase in prices over the last couple of years erased subsidy in metros and major cities.
Executives at state-run fuel retailers said a small subsidy is paid to customers in remote and far-flung areas to compensate for higher freight charges.
Prices of crude and products such as LPG softened in the second fortnight of March as a resurgence in Covid-19 infections in major economies, including India, the world’s third-largest oil consumer, subdued hopes of early recovery in demand.
In step with cooling oil prices, state-run fuel retailers, who dominate 90% of the market, also reduced petrol and diesel by 60 paise per litre in the last few days.