Oil marketing companies (OMCs) Saturday reduced the price of commercial liquefied petroleum gas (LPG) by about ₹200 per cylinder across the country.
However, the price of aviation turbine fuel (ATF), or jet fuel, was increased by ₹5 per litre to ₹115 per litre for domestic scheduled carriers.
The price of domestic LPG remained unchanged, although the price of five-kg free trade LPG cylinders – primarily catering to migrant workers – declined by ₹46 per cylinder.
In Mumbai, a commercial LPG cylinder now costs ₹2,691.5 (₹194 less), while in Chennai, it is priced at ₹2,906 (₹200 less).
On July 1, price of the 19-kg commercial LPG cylinder was reduced by about ₹183 per cylinder refill.
Oil marketing companies (OMCs) Saturday reduced the price of commercial liquefied petroleum gas (LPG) by about ₹200 per cylinder across the country. This is the second downward revision since the peak of West Asia crisis that saw prices spiral upwards by about ₹1,345 per cylinder across four tranches.
However, the price of aviation turbine fuel (ATF), or jet fuel, was increased by ₹5 per litre to ₹115 per litre for domestic scheduled carriers.
The price of domestic LPG remained unchanged, although the price of five-kg free trade LPG cylinders – primarily catering to migrant workers – declined by ₹46 per cylinder.
Prices in metros
A non-domestic LPG cylinder in Delhi now costs ₹192 less at ₹2,738 per cylinder, while a five-kg FTL cylinder is priced at ₹762 from the earlier 808.50 in the national capital. In Mumbai, a commercial LPG cylinder now costs ₹2,691.5 (₹194 less), while in Chennai, it is priced at ₹2,906 (₹200 less). Among the major metros, Kolkata saw the steepest fall of ₹209 for every 19-kg cylinder. It is now priced at ₹2,872.5.
With the latest revision, the price of the 19-kg cylinder meant for commercial and industrial consumers has declined by about ₹380 per cylinder across two tranches. On July 1, price of the 19-kg commercial LPG cylinder was reduced by about ₹183 per cylinder refill.
The price of FTL has also cumulatively been reduced by about ₹60 per cylinder across the two tranches.
The ATF price hike comes a month after it fell by the same ₹5 per litre on July 1.
Speaking to The Hindu, Prashant Vashisht, senior vice-president at ratings agency ICRA, stated that under-recoveries on LPG continue to exist, although diversifying sources of procurement have helped ease some of the earlier pressure.
“Before the war, we were getting a sizeable proportion of LPG supplies from one region [the Gulf]. Since then, we have figured out alternative sources,” he stated, adding, “Under-recoveries continue to exist although the pressure on supplies would not be the same as at the onset of the crisis.”
Sagar Daryani, the president of the National Restaurant Association of India (NRAI), welcomed the price cut. “It brings some relief to the industry, especially to small and independent restaurants that continue to operate on thin margins,” he told The Hindu, adding, “This will go a long way in helping restaurants manage costs better, focus on growth, and continue delivering better value to consumers.”
Further, speaking from the perspective of glass-making industry, Suraj Mehta, Chief Strategy Officer at Hindusthan National Glass & Industries emphasised, “For glass makers running furnaces round the clock, the reliability [of LPG supply] matters as much as the roughly ₹200 saved per cylinder. With festive season packaging demand from alcobev, pharma and FMCG approaching, the timing could not be better,” he stated.
