According to the latest reports, the prices of a standard cylinder of LPG (19 kg) have been curtailed by INR 135 per cylinder. It has been reported that the LPG cylinder will now cost INR 2171.50 in Mumbai.
On the other hand, it is slated to cost INR 2219 in Delhi, INR 2322 in Kolkata and INR 2373 in Chennai. The new rates are anticipated to be enforced from Wednesday, June 1.
At the same time, however, there has not been any change in the prices of domestic LPG cylinders. Therefore, households are unlikely to directly gain from this decision.
This slashing of prices by the Oil marketing companies (OMC) has reduced the prices of commercial LPG from INR 2,307 in Mumbai to INR 2171.50.
Based on narratives, beneficiaries of the Pradhan Mantri Ujjwala Yojana will receive INR 200 subsidy directly into their bank accounts. In light of this, for them, the effective price will be INR 803 per 14.2-kg cylinder.
Accounts suggest that India in a considerable proportion relies on overseas purchases to meet its oil requirement. Owing to this phenomenon the country becomes vulnerable to higher oil prices in Asia.
It is interesting to note that following the assembly elections in five states, the prices of LPG, petrol and diesel are being continuously increased.