More Bang For Your Buck: Prices Of LPG Cylinders Reduce Thanks To Global Rate Slump

Price of Liquified Petroleum Gas has fallen in the country due to fall in global prices, Mint has reported. The price of a non-subsidised 14.2-kg LPG cylinder has decreased by Rs 120.50 while that of subsidised one has fallen by Rs 5.91 per cylinder in Delhi. This is the second reduction of LPG prices in a month’s time.

From 1 January 2019, subsidised Indane LPG cylinder costs Rs 498.09 in Kolkata, Rs 494.99 in Delhi, , Rs 492.66 in Mumbai and Rs 482.88 in Chennai. The non-subsidised price of LPG cylinder is going to be Rs 714 in Kolkata, Rs 689 in Delhi, Rs 660 in Mumbai and Rs 704.50 in Chennai.

The reduction in subsidised LPG cylinder price is due to the Goods and Service Tax (GST) impact on price of non-subsidised LPG. “The balance amount is borne as subsidy (Rs 194.01 per cylinder) by the Central government and is being transferred to the bank account of LPG consumers after purchase and delivery of a refill,” Indian Oil explained in a statement.

Price break-up chart of 14.2-kg LPG cylinder shows a cost price of Rs 467.17 including import price of LPG at Arab Gulf, ocean freight and import charges. In addition to this, the storage and distribution cost of Rs 9.57, Rs 18.11 charges of cylinder cost, bottling charges of Rs 20.58 and Rs 31.47 of inland freight are included in the price at the distributor's end. Delivery cost, GST and distributors’ commission are computed to arrive at the retail price.