Commercial LPG cylinder prices slashed by Rs 171.5 per unit

New Delhi, May 01: Oil marketing companies have lowered the price of the 19-kg commercial LPG cylinder by up to ₹171.5 across metro cities.

In the national capital, commercial LPG cylinders would be sold at ₹1,856.50 against ₹2,028 last month. In Kolkata and Mumbai, prices would come down by ₹171.5 to ₹1960.50 and ₹1808.50 per cylinder, respectively, according to data from oil marketing companies.

In Chennai, a commercial LPG cylinder would cost ₹2,021.50, lower by ₹171 from last month. This is the second straight reduction after prices were cut by ₹91.5 in April.

The consecutive reduction in prices comes as a relief for hotels and restaurants, the major consumers of commercial LPG cylinders, after the OMCs had on March 1 this year raised the prices of commercial LPG cylinders by ₹350.50 per unit.

Commercial LPG cylinders are largely used in hotels and restaurants. The reduction in prices comes as global natural gas prices have eased. India imports about half of the cooking gas it uses. The decline in prices comes amid the ease in international gas prices.

LPG prices are usually revised on the first of every month. The price of 14.2 kg domestic LPG cylinders, however, has been kept unchanged for the month. The last revision in domestic LPG prices took place in March when prices were raised by ₹50 per cylinder.

Cooking gas prices are key elements of a household budget, and a revision in prices may impact the inflation rate. India’s retail inflation in March fell to a 15-month low of 5.66% in March as compared to 6.95% reported in the year-ago period, according to data from the National Statistics Office (NSO).

In the past year, post Russia’s invasion of Ukraine, international gas prices soared, OMCs did not revise the prices of domestic LPG in tandem with the rise in international prices. The government has also announced a one-time payment of ₹22,000 crore to OMCs to compensate them for their losses in selling cooking gas below cost.

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