Non-subsidised LPG or market-priced cooking gas prices were cut by a record Rs 162.50 per cylinder on Friday, in line with the slump in benchmark international rates.

This is the third straight monthly reduction in rates of non-subsidised LPG, which users who have given up subsidy buy. Also, this is the gas that domestic household consumers buy after exhausting their quota of 12 cylinders of 14.2 kg each at subsidised prices.

The outbreak of coronavirus and the lockdowns imposed by nations to curb the spread of virus has evaporated demand for oil, sending international oil prices crashing.

Benchmark Brent crude oil last month dropped to a two-decade low of USD 15.98 a barrel, but has rebounded since to USD 26.43 a barrel on Friday.

Non-subsidised LPG 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 firms.

This is the steepest reduction in non-subsidised cooking gas prices ever. It beats Rs 150.5 per cylinder cut effected in January 2019.

Also, this is the third straight monthly reduction in price on the back of falling international rates. The cut comes on the back of Rs 61.50 per cylinder reduction in April and Rs 53 cut in March.

In three reductions, the price of non-subsidised cooking gas has been cut by Rs 277 per 14.2-kg cylinder. It more than negates the massive Rs 144.5 per cylinder hike in rates introduced in February.

State-owned oil marketing companies revise the price of cooking gas on the first day of every month based on average of benchmark fuel in the international market and foreign exchange rate.

Cooking gas is available only at market price across the country. Eligible users, however, get a subsidy in their bank accounts for buying LPG cylinders at below-market rates.

In Mumbai, non-subsidised cooking gas price was reduced to Rs 579 per cylinder from Rs 714.50.

Domestic LPG users are entitled to buy 12 bottles of 14.2 kg each at subsidised rates in a year.

The price of 19-kg LPG cylinders, used by commercial establishment, has been cut to Rs 1,029.50 from Rs 1,285, the notification said.