From today, non-subsidized LPG-cylinders to get cheaper by Rs. 100
What's the story
In what is sure to provide major relief to consumers and households across the nation, Indian Oil Corporation has declared that non-subsidized LPG cylinders will get cheaper by Rs. 100.50 from Monday, July 1. As opposed to Rs. 737.50 earlier, LPG cylinders will now cost Rs. 637. Meanwhile, after the fresh rate revision, subsidized cylinders will cost Rs. 494. 35. Here are more details.
Press release
Favorable dollar-rupee exchange facilitated the decision: IOC
IOC revealed the decision in a press release which was put out on Sunday. The organization said prices were slashed in view of softening LPG rates in the international market. The favorable dollar-rupee exchange rate also facilitated the decision, explained IOC. "Upfront cash payment by consumer of domestic LPG will reduce by Rs. 100.50 per cylinder," IOC's statement added.
Subsidized rates
Separately, subsidized LPG cylinders will cost less than Rs. 500
Furthermore, the statement said, "As domestic LPG prices are subsidized by the government, the effective price after subsidy to the consumer will be Rs. 494.35 per cylinder for the month of July." The balance amount (Rs. 142.65 per cylinder) will be borne by the central government. This amount would be transferred into bank accounts of LPG consumers after the purchase of a refill.
Looking back
Just last month, Centre increased price of LPG cylinders
The change in rates comes exactly a month after rates were increased. From June 1, the price of LPG cylinders was increased by 3.65%, meaning Rs. 25 per cylinder. This increase put the Centre in the line of fire. Back then, West Bengal Chief Minister Mamata Banerjee had said, "Why were LPG prices hiked after the elections? We condemn the gas price hike."