LPG Cylinder Prices Raised For The Fifth Straight Month In January

In its monthly revision, prices of non-subsidized 14.2 kg LPG (liquid petroleum gas) cylinders were raised by an average of Rs 20 on Wednesday by the state-owned Indian Oil Corporation Limited (IOC) across major Indian cities. This is the fifth consecutive month of increase in rates, inching closer to the highest levels seen in 2019 (in May and June).

With effect from 1 January 2020, the new prices on LPG cylinders are:

City	Rates effective from 1 Jan 2020 (Rs)	Previous price (Rs)	Difference (Rs)
Delhi	714	695	19
Kolkata	747	725.5	21.5
Mumbai	684.5	665	19.5
Chennai	734	714	20

These rates are set by state-owned oil retailers based on international crude rates and rupee's exchange rates. The Indian rupee ended 2019 with 2.28 percent annual loss at 71.36 against US dollar.

Households in India are allowed a maximum of 12 LPG cylinder purchases per year at subsidized rates. However, cylinders have to be bought at full price at the time of purchase, and the subsidy is then credited to the customer's bank account by the government.

Subsidy received on these cylinders varies every month based on the changes in the pricing and tax rates. Further, GST (goods and service tax) on these cylinders are calculated on the market rates.

Residents also have the choice of voluntarily opt-out of subsidy.