The prices of non-subsidised liquefied petroleum gas were slashed by amounts ranging between Rs 61.50 and Rs 65 per cylinder in four metropolitan cities on Wednesday.
According to the website of the Indian Oil Corporation Limited, the price of a non-subsidised 14.2-kg LPG cylinder in New Delhi were reduced from Rs 805.50 to Rs 744. In Mumbai, the price was cut from Rs 776.50 to Rs 714.50. The price of a cylinder in Kolkata was slashed from Rs 839.50 to Rs 774.50, and in Chennai from Rs 826 to Rs 761.50.
Currently, the government subsidises 12 cylinders of 14.2 kg each per household in a year. Additional purchases of the cylinder have to be made at the market price. Factors such as changes in the average international benchmark LPG prices and foreign exchange rates determine the amount of subsidy, which varies from month to month.
Wednesday’s price cut follows the huge fall in global crude oil prices over the last few weeks, due to the coronavirus pandemic. The pandemic has taken over 42,300 lives so far, and infected more than 8,60,000 people, according to an estimate by Johns Hopkins University. Oil prices registered their worst quarterly performance on record over the first three months of the year ending March 31, CNBC reported.