In a big relief for consumers, oil marketing companies on Tuesday slashed the price of per unit commercial LPG cylinder by Rs 115.50 with immediate effect. This is the seventh cut in price of the 19 kg commercial LPG cylinder unit since June, in line with declining international energy prices.
The Indian Oil Corporation announced Rs 115.50 cut in the prices of 19 kg commercial LPG cylinder which brings down its price in New Delhi to Rs 1,744 from Rs 1,859.50 per cylinder earlier. One unit of the 19 kg LPG cylinder will now cost Rs 1,696 in Mumbai, Rs 1,846 in Kolkata and Rs 1,893 in Chennai (reduced by Rs 116.5).
This is the first price fluctuation in commercial LPG cylinder prices by oil marketing companies (OMCs) since the prices were last raised in May. OMCs usually announce LPG price change at the beginning and middle of each month.
Since June, commercial LPG cylinder rates have come down by Rs 610 per 19 kg cylinder. On October 1 too, the prices of commercial LPG cylinders were reduced. OMCs last month cut the price of per unit 19 kg cylinder by Rs 25.50.
This is because the rates of domestic cooking gas were way lower than cost and now with a drop in international prices, they are at breakeven, industry sources said. Commercial LPG rates, on the other hand, have largely been aligned with cost and so they have moved in tandem with rise and fall in international prices.
There is no change in the price of the 14.2 kg domestic LPG cylinder, which now cost Rs 1,053, as per the price notification from state-owned fuel retailers. On July 6, prices of domestic liquid petroleum gas cylinders weighing 14.2 kgs were raised by Rs 50 per unit. Previously, the prices for domestic cylinders were revised on May 19, 2022.
In the national capital Delhi, it currently sells at Rs 1,053 per unit. Besides, in Kolkata, Mumbai, and Chennai, it sells at Rs 1,079, Rs 1,052.5, and Rs 1,068.5, respectively.
Rates differ from state to state depending on the local VAT.
Meanwhile, CNBC Awaaz reported that OMCs may also cut petrol and diesel prices by 40 paise from November 1.
According to the report, a reduction in oil prices by 40 paise is likely to occur daily for the next five days. That will bring a total reduction of Rs 2 in petrol and diesel prices in instalments.
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