Subsidised and Non-Subsidised LPG cylinder rates cut by Rs 1.46 and Rs 30 respectively

On thursday, due to tax impact on reduced market rate of the fuel the domestic cooking gas-LPG rates was reduced.

Subsidised LPG cylinder rates:

A 14.2 kg subsidised LPG cylinder was cut by Rs 1.46 per cylinder and will now cost at Rs 493.53 in thee national captial from the midnight of thursday as against Rs 494.99 currently, Indian Oil Corporation (IOC), the country's largest fuel retailer, said in a statement.

This is the third straight monthly reduction in LPG rate. On december 1, subsidised LPG price was cut by Rs 6.52 per bottle and by Rs 5.91 on january 1.

Non-Subsidised LPG cylinder rates:

IOC said a 14.2 kg non-subsidised LPG rates have been cut by Rs 30 per cylinder and will now cost at Rs 659 as against of Rs 689 in delhi. Due to fall in price of LPG in international market and strengthening of US dollar-rupee exchange rate.

On january 1, the reduction comes on the back of Rs 120.50 and on december 1 of Rs 133. However, thesubsidies of 12 cylinders 14.2 kg per households in a year by providing the subsidy amount directly to the bank accounts of users.

Based on international rates, this subsidy amount varies from month to month. The government provides a higher subsidy when the international rates moves high and the government provides low subsidy when the international rates comes down. The GST of LPG has to be calculated at the market rate of the fuel.

IOC said, "Accordingly, the upfront cash payment by the consumer of domestic LPG will also reduce by Rs 30 per.cylinder. Domestic LPG consumer will now be required to make upfront cash payment of Rs 659 a cylinder in place of Rs 689 per cylinder".

Based on reduced rates, now the subsidised cooking gas consumers will get Rs 165.67 per cylinder subsidy in their bank accounts for the month of february, down from Rs 194.01 in january.