The government is subsidising 12 cylinders of 14.2 kilograms each per household in a year.
LPG or liquefied petroleum gas prices were hiked up to 3.65 per cent in June. A report by NDTV Profit Team states that the price of non-subsidised LPG - or cooking gas - in Delhi was increased to Rs. 737.50 per cylinder (14.2 kilograms) with effect from June 1, according to Indian Oil Corporation - which supplies the fuel under brand Indane.
IOC in its release said that LPG cylinders will be priced cheaper by Rs 100.50.
The non-subsidised LPG gas cylinders will be available for Rs 637 per cylinder instead of earlier price of Rs 737.50. The amendment will bring relief to households who use LPG cylinders across the country.
According to IOC's press release, the decision to cut LPG cylinder rates was taken amid softening LPG rates in the international market and a favourable dollar-rupee exchange rate. Furthermore, subsidised LPG rates have come down to Rs 494.35 per cylinder after the rate revision. The release also said that the balance amount of Rs 142.35 per cylinder "would be borne as subsidy" by the central government and the same will be transferred to the customer's bank account after the purchase of a refill.
The price of non-subsidised LPG stood at Rs. 737.50 per cylinder in Delhi, as against Rs. 712.50 per cylinder in May 2019.
The amount of subsidy varies from month to month depending on the changes in the average international benchmark LPG prices and foreign exchange rates.
According to ET, RIL currently has a cooking gas distribution base of about 10 lakh consumers to whom it supplies non-subsidised cylinders, mostly in Gujarat and Maharashtra. This figure is very small as compared to India's customer base of 2.65 crore. India, which is the world's second-largest LPG consumer, reportedly consumed 24.9 million metric tonnes of LPG in 2018-19.