LPG price cut: OMCs cut commercial cylinder prices ahead of elections
LPG price cut: Despite of the fresh price cut, 19 kg LPG cylinder prices at current levels remain higher than the level few months ago.
Ahead of Lok Sabha Elections 2024, slated to begin from April 19, 2024, the government on Monday, April 1, 2024 reduced the price of 19 kg LPG cylinder by Rs 30.50. The commercial cylinders will now cost Rs 1,764.50 in New Delhi, Rs 1,718.50 in Mumbai, Rs 1,880.50 in Kolkata and Rs 1930 in Chennai.
Before this, the Oil Marketing Companines (OMCs) Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) had hiked commercial cylinder prices consecutively in February 2024 and March 2024.
Despite the price cut, cylinder prices remain higher than before
Despite the fresh price cut, 19 kg LPG cylinder prices at current levels remain higher than the level few months ago. This is because, fuel retailers have revised prices on first of every last few months. First they hiked prices in November 2023, then, reduced prices. In Decembefr there was fresh hike followed by a mrginal cut on January 1, 2024. Then, again retailers hiked prices consecutively in February and March 2024 before taking a fresh cut again. So, if we adjust this price revision, cylinders currently cost Rs 71.5 more as compared to November 2023 levels.
Commercial cylinders are used in hotels and restaurants. So, after the fresh price cut, these business establishments may pass on the price cut benefit to the end consumers.
While, on the other hand, the price of 14.2 kg cooking cylinder prices used by households was recently reduced and it costs Rs 803. State-owned OMCs revise cooking gas prices on the 1st of every month, based on the average international price in the previous month.
Petrol and diesel prices on the other hand was also reduced in March 2024 by Rs 2 per litre. Petrol currently costs Rs 94.72 per litre in the national capital, and diesel comes for Rs 87.62 per litre. 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.