Commercial LPG Prices Cut ₹183.50 From July 1

Oil marketing companies (OMCs) have lowered the rates of commercial LPG cylinders by ₹183.50 effective July 1, providing relief to commercial users including hotels and restaurants after several months of rising commercial cylinder rates.

In Delhi, the cost of a commercial cylinder is now at ₹2,930, which had been at ₹3,113.50 in June. Prices declined to ₹3,081.50 in Kolkata, where they had increased the most during the West Asia crisis, from ₹3,255.50. The price of Chandigarh saw a cut of ₹181.50, and Patna saw a reduction of ₹173.

The hike in commercial cooking gas prices is the first cut on prices this year after a series of price increases brought on by disruptions in supplies due to the Iran conflict's impact on shipping through the Strait of Hormuz, a key energy route that supplies about 90 per cent of India LPG imports, were placed.

The prices of Domestic 14.2 kg LPG cylinder have been kept unchanged and continued to follow Government's policy of keeping the domestic consumers away from price fluctuations in their surroundings.

The cut is coinciding with the decision made by the Petroleum Ministry last week to bring commercial LPG supplies back to pre-crisis levels.

The ministry insisted that the restriction is removed because of "improved domestic production and the expected arrival of imported LPG cargoes. Commercial supplies were reduced by as much as 50 per cent in some areas during the crisis to meet the needs of the family.

Average international benchmark prices from the previous month are used to calculate the commercial LPG rates for the coming month which are then revised by OMCs. Depending on the LPG and crude oil markets in the rest of the world, more moves will follow.