NEW DELHI: Fuel consumers will continue to reap the bonanza from sliding global oil prices in the New Year, with subsidised cooking gas refill becoming cheaper by Rs 120.50 from Tuesday and petrol prices set to open their 2019 inning at a year’s low.
The reduction, second in a month, will reduce the upfront cash payment burden on consumers by Rs 120.50 when buying a refill. Consumers will now Rs 689 upfront for each cylinder instead of Rs 809.50 till now.
Since cooking gas refills are subsidised by the government, the effective price for consumers will reduce by Rs 5.91 per cylinder, or from Rs 500.90 in December 2018 to Rs 494.99 in January 2019, due to incremental decline in quantum of GST.
The government gives subsidy on base price on LPG but passes on any incremental change in levied GST. Accordingly, non-subsidised LPG cylinders too will cost Rs 5.91 less. The subsidy will now stand at Rs 194 per cylinder, to be transferred to the bank account of consumers.
The reduction has been prompted by a fall in global LPG price and a stronger rupee. The reduction in the effective rate for consumers, after adjusting the subsidy, is due to incremental reduction tax on the base price.
This is the second straight monthly reduction in LPG rate. Effective subsidised LPG price was cut by Rs 6.52 per bottle on December 1, marking the first cut after six consecutive monthly hikes in rates since June. The two recent reductions have nearly erased the total price increase of Rs 14.13 between June and November.
Petrol prices hit their lowest in 2018 at Rs 68.84 a litre in Delhi. Diesel too declined to Rs 62.86 in Delhi.
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