Commercial LPG prices cut by Rs 200 in Delhi, Kolkata

Restaurants, hotels and other commercial establishments have received some relief from high cooking fuel costs, with the price of 19-kg commercial LPG cylinders being reduced by more than Rs 200 in metro cities including Delhi and Kolkata.

The biggest reduction was announced in Kolkata (Rs 209), followed by Delhi (Rs 202), Chennai (Rs 200) and Mumbai (Rs 194). This is the second straight monthly reduction in commercial LPG rates following an Rs 183.5 cut on July 1. There has been no change in the price of domestic LPG cylinders.

Following the latest revision, a 19-kg commercial LPG cylinder will cost Rs 2,872.50 in Kolkata. Meanwhile, for Delhi, it would mean that the price comes down to Rs 2,728.

The two reductions in commercial LPG rates on July 1 and August 1 followed the West Asia crisis, pushing rates to record highs in June. After the outbreak of the conflict in late February, commercial LPG rates had risen by a massive Rs 1,373 per 19-kg cylinder — from Rs 1,740.50 in February to Rs 3,113.50 in June. Alongside, prices of 5-kg market-priced LPG cylinders were cut to Rs 762 from Rs 808.50.

The reduction comes as global energy markets continue to adjust to supply risks arising from geopolitical tensions in the region. While the impact of the West Asia crisis has contributed to volatility in fuel prices, the latest LPG revision provides some relief to commercial consumers in key markets.

The lower input cost may also offer some support to the broader hospitality and food-services sector.

These prices — revised on the first of every month, based on benchmark international prices and foreign exchange rates — vary from State to State depending on local taxes such as VAT.

Rates of domestic LPG used in household kitchens remain unchanged at Rs 942 per 14.2-kg cylinder. Prices of domestic LPG were last raised by Rs 29 per 14.2-kg cylinder on June 7. Rates had gone up by Rs 60 in March after the West Asia crisis led to supply disruptions and a surge in international energy prices.

In contrast, ATF prices were raised to Rs 115 per litre from Rs 110 per litre. The increase reverses a reduction of a similar proportion implemented on July 1 and could raise operating costs for airlines, for which fuel is a major expense.

Petrol and diesel prices, which were hiked by about Rs 7.50 a litre each in May, too, remained unchanged.

Commercial LPG prices have witnessed multiple revisions this year. In June, oil marketing companies increased the price of a 14.2-kg domestic LPG cylinder by Rs 29, raising the retail price in Delhi to Rs 942 from Rs 913. Earlier, on March 7, oil companies had raised domestic LPG prices by Rs 60 per cylinder, citing disruptions in global energy markets linked to the conflict in West Asia.

Commercial LPG prices were also revised upward in April, when oil marketing companies increased the price of 19-kg commercial cylinders by Rs 195.50 across metropolitan cities amid heightened geopolitical tensions in West Asia. Following that revision, the retail price of a commercial cylinder stood at Rs 2,208 in Kolkata, Rs 2,031 in Mumbai, and Rs 2,246.50 in Chennai.

The year began with another hike. Effective January 1, oil marketing companies increased the price of a 19-kg commercial LPG cylinder by Rs 111, taking the retail price in Delhi to Rs 1,691.50. The price of the 5-kg Free Trade LPG (FTL) cylinder was also raised by Rs 27.