LPG Cylinders Becomes Rs 100 Cheaper From July 1st: Find Out Why This Happened
LPG Cylinders, the most common and widely used mode of cooking fuel, has been made Rs 100 cheaper, effective July 1st.
But why has the Govt. taken this step?
Keep reading to find out more!
LPG Cylinders Become Rs 100 Cheaper
India Oil Corporation (IOC) has announced the decision to make LPG Cylinders cheaper by Rs 100.
In a statement, they announced that non-subsidised LPG in Delhi will now become cheaper by Rs 100.50.
After this announcement, the upfront cash payment required for getting a filled cylinder has also been slashed by Rs 100.50. Earlier, Rs 737.50 per cylinder was required to pay for getting the cylinder, which has been now reduced to Rs 637 per cylinder.
Note here, that the discount of Rs 100.50 has been reduced for every 14.2 kg of LPG.
And, the reduction in the price of LPG Cylinder is only for non-subsidized LPG cylinder.
Who Will Pay For The Subsidy Now?
After the price cut, the effective price of a LPG cylinder after subsidy will be Rs 494.35 per cylinder. This means that the subsidy of Rs 142.65 per cylinder will be borne by the Central Govt., and the balance amount will be duly transferred to the user’s bank account, after refill and its delivery.
This reduction in the price of LPG cylinder is music to the ears of the consumers, as the price of the same LPG cylinder was increased by 3.65% in the month of June by the Govt.
Major opposition parties include Congress, Trinamool Congress and others had hit the street to protest this increase in price.
Why Price Of LPG Has Been Slashed?
As per the statement by IOC, the reduction in the price of LPG cylinder has been made because of the decrease in oil prices, globally. And due to a stronger rupee against USD.
IOC said, “The price of non-subsidised LPG in Delhi will decrease by Rs 100.50 per cylinder with effect from July 1 based on LPG prices in international market and US dollar-rupee exchange rate.”
Now, this global meltdown in prices of crude oil has happened due to various reasons: Factory output in China has slowed down, which translates to low oil demand, and high supply.
On the other hand, US crude inventories have swelled, and right now, US oil reserves is at its highest point since September 2017.
We will keep you updated, as we receive more updates.