After the hike in LPG prices to ₹ 125 per cylinder last month, state-owned oil companies on Wednesday announced a cut in PG prices of PG 10 per cylinder on softening of international oil prices.
Indian Oil Corporation (IOC) said in a statement, 14.2 kg LPG cylinder – both subsidized and market-priced users – will cost -809 from April 1.
The price cuts, which are traditionally announced on that day, the change takes effect – in West Bengal and Assam, rates rose fourfold in the span of a month, the day before the second phase of voting.
“The prices of crude oil and petroleum products in the international market have been steadily increasing since November 2020. Since India is largely import-dependent on crude oil and prices are market-linked, international prices have increased. Domestic price, ”the IOC said.
However, due to rising COVID cases in Europe and Asia and concerns over the side effects of the vaccine, the prices of crude oil and petroleum products in the international market softened in the second fortnight of March 2021.
LPG prices had increased by 125 per 14.2 kg cylinder since the beginning of February, as revealed by the price data of state-owned oil marketing companies.
LPG is available only at one rate, market price, across the country. The government, however, offers a small subsidy to select customers.
However, over the years, subsidies have been abolished in great prices and in major cities. Therefore, in places like Delhi, no subsidy is given to customers from May 2020 and all LPG users pay the market price, which has now come down to Delhi 809.
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