LPG price cut by Rs 170 a cylinder across metros

Liquefied Petroleum Gas (LPG or cooking gas) prices were cut by ₹170 a cylinder on an average across metros on Friday.

After the cut in price, a 14.2 kg non-subsidised domestic LPG cylinder will cost ₹581.5 in Delhi, ₹584.5 in Kolkata, ₹579 in Mumbai and ₹569.5 in Chennai. These prices are generally applicable for a month from the date on which they are revised.

Eligible consumers will receive a subsidy, through direct benefit transfer in their bank accounts, after paying these lowered upfront costs for cooking gas. The average cost of a subsidised domestic LPG cylinder is close to ₹550 a cylinder across the country.

So, after the revision, the effective price for most LPG consumers remained unchanged, but the upfront cost has been lowered significantly.

Prior this revision, each domestic LPG cylinder costed ₹744 in Delhi, ₹774.50 in Kolkata, ₹714.50 in Chennai and ₹761.50 in Mumbai.

The country has around 26 crore LPG consumers, of which some 8 crore are covered under the Pradhan Mantri Ujjwala Yojana (PMUY).

Surge in demand

There has been an initial surge for cooking gas from urban centres when the Covid-19 lockdowns were announced. This demand appears to have plateaued and now the focus has shifted to providing free cylinders for PMUY consumers as announced under the Pradhan Mantri Garib Kalyan Package.

To meet this surged demand for cooking gas, Indian Oil Corporation Limited (IOCL) has tied up additional LPG imports for April and May, 2020.

A company statement said that IOCL will be importing about 50 per cent more LPG to ensure uninterrupted availability of bulk LPG for its bottling plants.

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