Oil marketing companies have reduced the price of commercial LPG gas cylinders, with the new rates effective from April 1. The cost of a 19-kg commercial LPG gas cylinder has been reduced by over Rs 40.
In Delhi, the price for a 19-kg commercial cylinder will be reduced to Rs 1,762 from the earlier Rs 1,803, according to data on the Indian Oil Corp. website. The price in Mumbai has been reduced to Rs 1,713.50 from the earlier Rs 1,755.5.
While the 19 kg commercial LPG will now cost Rs 1,921.5 in Chennai, it will cost Rs 1,868.5 in Kolkata.
Prices for LPG cylinders were raised in March after two consecutive months of cuts.
Besides, the prices of domestic LPG cylinders of 14.2 kg will remain unchanged. The domestic cooking gas prices were last revised on Aug. 1, 2024.
The 5 kg and 14.2 kg cylinders are largely meant for domestic use and comprise almost 90% of all gas distributed, while the 19 kg, 47.5 kg and 425 kg jumbo cylinders are marketed for industrial and commercial consumption, according to the Indian Oil website.
The price of jet fuel or ATF was also trimmed on Tuesday to Rs 89,441.18 per kilolitre in Delhi, according to state-owned fuel retailers. The price in Mumbaiis Rs 83,575.42 per kl.
Currently, LPG prices in India are subsidised to ensure affordability for domestic consumers. Oil companies like Indian Oil, Bharat Petroleum and Hindustan Petroleum not only produce their own LPG, but also import it from international sources and sell it domestically.
Thus, higher production costs, as well as import costs, exert pressure on the companies' profitability in the segment, as the domestic selling prices remain capped.
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