Indian Oil Corporation Limited (IOCL) on Wednesday said that the cost of a domestic LPG cylinder will reduce by Rs 10 per cylinder from April 1.
LPG cylinder prices had been increased by Rs 125 per cylinder in recent weeks. At present, an LPG cylinder costs Rs 845 in Kolkata, Rs 819 in Mumbai and Delhi and Rs 835 in Chennai.
The price of LPG cylinders was first hiked by Rs 25 on February 4, by Rs 50 on February 14 and on February 25 it was hiked by Rs 25. Again on March 1, prices were hiked by Rs 25.
In India, the price of LPG cylinders -- both cooking and commercial -- is determined by state-run oil marketing companies. According to the prevailing rules, the government provides subsidies on a total of 12 (14.2 kg) cylinders per year to each household.
On the basis of the market rate, customers have to pay extra to purchase additional LPG cylinders as per their requirement. The quantity of the subsidy offered by the government on the annual quota of 12 refills fluctuates from month to month. The subsidy on LPG is influenced mainly by factors such as crude oil as well as foreign exchange rates.
First Published: IST