In a move to offer financial relief to businesses and commercial enterprises, oil marketing companies have announced a Rs 30 reduction in the price of 19kg commercial LPG cylinders, effective July 1. This price adjustment marks another round of cuts in commercial LPG cylinder rates, reflecting ongoing efforts to manage operating costs amid broader economic challenges.
According to a report, the new retail price of a 19kg commercial LPG cylinder in Delhi is now Rs 1,646, down from the previous rate of Rs 1,676. The price reduction has been implemented across major cities, with the 19kg commercial LPG cylinder now priced at Rs 1,756 in Kolkata and Rs 1,598 in Mumbai.
This latest price cut follows a series of reductions over the past few months. On June 1, 2024, the price of a 19kg commercial LPG cylinder was reduced by Rs 69.50 in Delhi, bringing the retail price to Rs 1,676. On May 1, 2024, there was a reduction of Rs 19 per cylinder, which had previously set the price at Rs 1,745.50 in Delhi. These consecutive price decreases indicate a positive trend aimed at alleviating the financial strain on businesses reliant on commercial LPG for their operations.
The price adjustments reflect the dynamic nature of the LPG market, influenced by factors such as international oil prices, taxation policies, and supply-demand dynamics. Oil marketing companies, including Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL), revise LPG and aviation turbine fuel (ATF) prices on the first of each month based on the average price of international fuel benchmarks and foreign exchange rates.
In addition to the reduction in commercial LPG prices, last month, a 6.5 per cent decrease in the prices of ATF was also seen, providing additional relief to the aviation sector. The adjustments in commercial LPG prices, alongside these changes in ATF rates, underscore the companies’ efforts to respond to the fluctuating global fuel market and domestic economic conditions.
It is important to note that this price reduction for commercial LPG cylinders does not extend to domestic LPG cylinders. As of July 1, 2024, the prices for 14.2kg domestic LPG cylinders remain unchanged. Domestic cooking gas cylinders will remain available at Rs 803 in Delhi, Rs 829 in Kolkata, Rs 818.50 in Chennai, and Rs 802.50 in Mumbai.
The stability in domestic LPG prices is significant for households nationwide, providing consistency in the cost of essential cooking gas despite broader economic fluctuations.
The recent price cut for commercial LPG cylinders offers a much-needed respite to businesses, especially those in the food and hospitality sectors, which rely on commercial LPG for daily operations. Reducing costs may help these businesses manage their operating expenses more effectively and potentially offer savings to consumers.
This price adjustment also aligns with the government’s broader efforts to promote cleaner cooking fuels through various schemes, such as the Pradhan Mantri Ujjwala Yojana, which provides subsidies to eligible families for LPG cylinder purchases. These initiatives aim to improve living standards and encourage the adoption of cleaner energy sources.
As the market evolves, stakeholders will closely monitor the factors influencing LPG price adjustments, including trends in the international oil market and domestic economic policies. The recent reduction in commercial LPG prices represents a significant step in managing the financial challenges businesses face and highlights the ongoing responsiveness of oil marketing companies to economic conditions.
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