Commercial LPG cylinder prices cut; no relief for domestic consumers
With tensions abating in West Asia, consumers in India got major relief due to cuts in the prices of commercial LPG and Chotu cylinders, while Households, however, will have to wait.
Oil-marketing companies have reduced the prices of the commercial variant of liquefied petroleum gas (LPG) cylinders by an average of Rs 180 per cylinder and that of the five-kg free trade LPG (FTL) cylinders by approximately Rs 13 per cylinder. In addition to this, prices of aviation turbine fuel (ATF) for domestic scheduled carriers have been slashed by Rs 5 per litre to Rs 110 per litre. Other than LPG, privately owned oil marketing company Nayara Energy – which operates more than 7,000 pumps across the country – also reduced the price of petrol and diesel by Rs 5 per litre and Rs 3 per litre respectively. State-owned Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL), which together account for more than 90 per cent of India's fuel retail market, left prices unchanged. In Delhi, IOC continues to sell petrol at Rs 102.12 per litre and diesel at Rs 95.20 per litre. The BJP on Wednesday welcomed the reduction in commercial LPG prices, saying the decision reflects the Modi Government's commitment to protecting citizens' interests despite global uncertainties.
The 19 kg cylinder in Delhi – which also serves as the benchmark for prices in the country – became cheaper by Rs 183.5 to Rs 2,930 per cylinder. Further, the price of the five-kg free trade LPG cylinder refills – primarily catering to migrant labourers – now stands at Rs 808.5 per cylinder with the latest reduction.
Along largely similar lines, Mumbai woke up to prices of the 19-kg cylinder being reduced by Rs 182 per cylinder to Rs 2,885 per cylinder. Prices in Kolkata have been reduced by Rs 174 to Rs 3081.5 per cylinder. Chennai too witnessed a Rs 177 reduction in prices with the 19 kg cylinder now being sold at Rs 3,106 per cylinder. Prices of domestic 14.2-kg LPG cylinders were left unchanged at Rs 942.
The latest revision marks the first reduction in commercial LPG prices this year. It comes after commercial users faced successive price increases over the past few months as global LPG markets were rattled by supply concerns linked to the conflict in the Middle East. The reduction is expected to lower operating costs for businesses that depend heavily on commercial LPG, including restaurants, hotels, roadside eateries and catering services.
Wednesday’s price cut comes after four tranches of hikes that saw the price of commercial LPG cumulatively increase to Rs 1,345 per cylinder since March 7.
Further, the fall in commercial LPG prices comes in nearly a week after the Union Petroleum Ministry on June 25 restored the supply of industrial and commercial LPG to pre-crisis levels and withdrew all sector-specific allocations, citing an improved supply situation.
