In a New Year gift to businesses, oil marketing companies have reduced the prices of commercial liquefied petroleum gas (LPG) cylinders weighing 19 kg. This is in line with their customary monthly revision, where LPG prices are usually revised on the first day of each month. The new rates are effective from January 1.
As per the Indian Oil Corporation, effective January 1, 2024, the cost of commercial LPG—used in establishments like hotels and restaurants—will now be Rs 1,755.50 per 19-kg cylinder in the national capital Delhi, down by Rs 1.50 from the previous price of Rs 1,757. In Mumbai, the new price is Rs 1,708.50 per 19-kg cylinder, marking a decrease of Rs 1.50 from the previous Rs 1,710.
Meanwhile, in Chennai, it will be available for Rs 1924.50 instead of the previous Rs 1,929. In Kolkata, the price of a commercial gas cylinder is now Rs 1869, an increase of 50 paise.
Rates differ from state to state based on incidence of local taxation. Saudi contract price, the benchmark used for pricing of LPG, has softened in the last few weeks' oversupply concerns.
This is the second instance of price reduction, with a previous cut announced just ahead of the Christmas. Commercial LPG prices were cut by Rs 39.50 last in Delhi on December 22, 2023.
State-owned oil firms last hiked the price of commercial LPG by Rs 21 on December 1.
There is no change in the price of domestic 14.2 kg gas cylinders commonly used in household kitchens for cooking. Domestic LPG rates were last changed on August 29, when the government announced additional subsidy of Rs 200 per LPG cylinder. In Delhi, LPG cylinder is available for Rs 903, while in Kolkata it is being sold for Rs 929, in Mumbai for Rs 902.50 and in Chennai for Rs 918.50.
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