The Indian Oil Corporation announced on Sunday that liquefied petroleum gas cylinders will be cheaper by Rs 100.5 from Monday. “Domestic LPG consumer will now be required to make upfront cash payment of Rs.637.00/- cylinder in place of Rs.737.50/- cylinder,” a press release by IOCL said.
“As domestic LPG prices are subsidized by government, the Effective Price after subsidy to consumer will be Rs 494.35/cyl [per cylinder] for the month of July 2019,” the press release added. “The balance amount is borne as subsidy (Rs 142.65/cylinder) by the Central Government and is being transferred to the bank account of LPG consumers after purchase and delivery of a refill.”
IOCL said the price of cooking gas cylinders has been cut drastically following softening of LPG prices in the international market and a favourable dollar to rupee exchange rate. The rupee traded at 69.01 against the United States dollar as of Sunday.
The cut in cooking gas prices came exactly a month after they were raised by 3.65%, NDTV reported. This amounted to an effective increase of Rs 25 per cylinder.