Commercial LPG cylinder price hiked by Rs. 209
The Indian Oil Corporation Limited (IOCL), a government-owned oil and gas company, has hiked the price of commercial Liquefied Petroleum Gas (LPG) cylinders by Rs. 209 starting Sunday, The Economic Times reported. The new retail price for a 19 Kg commercial LPG cylinder will be Rs. 1,731.50 in Delhi. However, the cost of domestic LPG remains the same. LPG is commonly used for a variety of purposes, including motor fuel, cooking gas, heating, refrigeration, and high-end industrial processes.
Aviation Turbine Fuel prices continue to rise
According to MoneyControl, Aviation Turbine Fuel (ATF) prices have also risen by 5% along with the commercial LPG price hike. This reportedly marks the fourth consecutive monthly increase since July. The increase aligns with the strengthening of international benchmarks. The oil companies usually revise prices on the first of every month based on the average international price in the previous month. Jet fuel is an essential component of the aviation industry and plays a significant role in determining airfare costs.
Commercial LPG cylinder prices hiked across cities
With the price hike, the commercial LPG cylinder price in Delhi has now been increased to Rs. 1,731.50. A 19-kg commercial LPG cylinder will now cost Rs. 1,684 in Mumbai. In Chennai, the new price is Rs. 1,898/cylinder. The hike has come after two successive reductions in August and September. Notably, on September 1, the government slashed the price by about Rs. 158, and on August 1, its price was reduced by Rs. 99.75.
Domestic LPG prices slashed in August
In August, the Union Cabinet announced a reduction in domestic LPG prices for almost 330 million consumers in India on the occasion of Raksha Bandhan. Union Information and Broadcasting Minister Anurag Thakur made the announcement, saying that all domestic consumers would receive a Rs. 200 subsidy per cylinder. Moreover, users under the PM Ujjwala scheme got the subsidy on top of their existing Rs. 200 subsidy. This decision increased the subsidy for Ujjwala beneficiaries to Rs. 400 per LPG cylinder.
Price hike due to increase in Saudi contract price: Report
The Mint reported that the price hike may be due to the increase in the Saudi contract price (CP), the benchmark used for the pricing of LPG. The CP reportedly increased following a firming-up trend in crude oil prices witnessed in the last few weeks due to oversupply concerns. However, the oil companies in India did not change the price of 14.2 kg domestic cylinders. It remains at Rs. 903 per cylinder.
