Price of commercial LPG, which is used by business establishments like hotels and restaurants, on Thursday was cut by Rs 83.5 per 19-kg cylinder — the third straight monthly reduction, while rates of jet fuel (ATF) were slashed by 7 per cent on softening international oil prices.
A 19-kg commercial LPG now costs Rs 1,773 in the national capital, down from Rs Rs 1,856.5, according to price notification from state-owned fuel retailers.
This is the third straight monthly reduction in commercial LPG prices.
Rates were cut by Rs 91.5 per 19-kg cylinder on April 1, and by a steep Rs 171.5 on May 1.
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The three reductions have almost wiped out the Rs 350.5 per cylinder hike in prices effected from March 1.
The price of domestic LPG — the one households use in the kitchen for cooking purposes — remained unchanged at Rs 1,103 per 14.2-kg cylinder in the national capital.
Domestic LPG rates were last changed on March 1, when they were hiked by Rs 50 per cylinder.
State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) revised cooking gas prices on the 1st of every month based on the average international price in the previous month.
Separately, ATF price was cut by a steep 7 per cent in line with international trends.
Accordingly, jet fuel rates were reduced by Rs 6,632.25 per kilolitre to Rs 89,303.09 per kl in Delhi.
This is the fourth straight monthly reduction in rates. Prices were cut by 4 per cent (Rs 4,606.50 per kl) on March 1, by 8.7 per cent (Rs 9,400.68 per kl) on April 1 and by 2.45 per cent (Rs 2,414.25 per kl) on May 1.
ATF price is revised on the 1st of every month based on the average rate of international benchmark and foreign exchange rates.
International oil prices have erased all gains made since OPEC+ producers announced a surprise production cut earlier in April.
Oil prices have fallen to below USD 73 per barrel from above USD 87 per barrel in days following the OPEC+ decision to cut output on concerns over a weak demand outlook and on fears of debt default in the world’s biggest oil consumer, the US.
Oil prices peaked at USD 139 a barrel in March 2022 in the aftermath of Russia-Ukraine war.
Petrol and diesel prices, however, continued to remain on freeze for a record 14th month in a row. Petrol costs Rs 96.72 per litre in the national capital and diesel comes for Rs 89.62.
State-owned fuel retailers are supposed to revise petrol and diesel prices daily based on a 15-day rolling average of benchmark international fuel prices but they haven’t done that since April 6, 2022.
Prices were last changed on May 22, when the government cut excise duty to give relief to consumers from a spike in retail rates that followed a surge in international oil prices.