In a marginal relief to the households across the nation, the prices of non-subsidised LPG were slashed effective March 1. The decision to cut down the prices has been taken for the first time since August last year. Notably before the latest reduction in the prices of non-subsidized LPG the prices were increased six times in the past six months.
As per the new rates, in Delhi, a 14.2 kg non-subsidised LPG cylinder will be available at Rs 805, down from Rs 858 in the previous month. In other metros, a cylinder will cost - Rs 839 in Kolkata, Rs 777.5 in Mumbai and Rs 826 in Chennai. Last year, the non-subsidised cylinders were increased by almost 50 percent in six revisions between August and February last year.
According to the central government's PAHAL (Direct Benefit Transfer of LPG) scheme, every household is entitled to get 12 cylinders of 14.2 kg each at subsidized rates in a year. The subsidy quantum given to them is the difference between the market-determined price and the subsidised price. Factors including the average international benchmark LPG prices and foreign exchange rates determine the amount of subsidy the central government provides for a cylinder.
A reported published on NDTV portal indicated that a 19-kg cylinder will also be available at a cheaper price. In Delhi, a single unit will be available for Rs 1,381.50 and Rs 1,331.00 in Mumbai, from Rs 1,466.00 and Rs 1,540.50, respectively.
Oil minister Dharmendra Pradhan predicts rates
Interestingly, the rate cuts were announced today a week after oil minister Dharmendra Pradhan had predicted that the rates may come down in March and prices were hiked in February due to pressure from international markets. The minister on 19th Feb has said, "There are indications that the prices may come down next month." It is to be noted that the prices of an LPG cylinder witnessed a sharp increase by Rs. Rs 144.5 per cylinder in Delhi, the steepest hike in the national capital since January 4, 2014.
