State-owned oil marketing companies have lowered the price of non-subsidised cooking gas by Rs 162.50 a cylinder, in the steepest reduction ever, as the global coronavirus crisis has demolished fuel demand.
Nationwide lockdowns to curb the spread of the virus have evaporated the demand for oil, sending international oil prices crashing. Benchmark Brent crude oil dropped to a two-decade low of $15.98 a barrel last month' it has rebounded since to trade at $26.43 a barrel on Friday.
Non-subsidised cooking gas now costs Rs 581.50 per 14.2-kg cylinder in Delhi, down from Rs 744 till Thursday, according to a price notification issued by state-owned oil companies.
This is a third straight monthly price reduction and comes on the back of falling international rates. Earlier, the price had been lowered by Rs 61.50 per cylinder in April, and by Rs 53 cut a month before.
Through three reductions, the price of non-subsidised cooking gas has been reduced by Rs 277 per 14.2-kg cylinder, more than negating the massive Rs 144.5-per-cylinder price hike effected in February.
State-owned oil marketing companies revise the price of cooking gas on the first day of every month based on the average of benchmark fuel in the international market and foreign exchange rates.
Cooking gas is available across the country only at market price. Subsidy is transferred directly to the bank accounts of eligible buyers.
In Mumbai, the price of non-subsidised cooking gas was reduced to Rs 579 per cylinder from Rs 714.50. Eligible domestic users of cooking gas are entitled to 12 cylinders of 14.2 kg each at subsidised rates in a year.
The price of 19-kg LPG cylinders, used by commercial establishment, has been lowered to Rs 1,029.50 from Rs 1,285.