Delhi: Commercial LPG cylinder price cut by Rs. 91.5
Amid the soaring inflation across India, petroleum and oil marketing companies have reportedly decided to slash the price of commercial liquefied petroleum gas (LPG) cylinders in Delhi by Rs. 91.5 per unit with immediate effect from Saturday. As a result of this move, consumers in the national capital will now have to pay Rs. 2,028 for a 19kg commercial LPG cylinder.
Why does this story matter?
This move comes exactly a month after petroleum and oil marketing companies decided to increase the price of commercial LPG cylinders by over Rs. 350 per unit in Delhi. Moreover, LPG cylinder prices reportedly went up four times in 2022. The price hikes primarily happened after the start of the ongoing Russia-Ukraine crisis in February 2022, which massively disrupted worldwide crude oil prices.
No change in domestic LPG cylinder prices in Delhi
While the price of commercial cylinders has been reduced, no changes have been made to the prices of domestic LPG cylinders, ANI reported citing sources. The 19kg commercial cylinders will now cost Rs. 2,028 in Delhi, Rs. 1,980 in Mumbai, Rs. 2,132 in Kolkata, and Rs. 2,192.50 in Chennai. Notably, commercial cylinder prices were last slashed in India by Rs. 91.50 on September 1.
LPG cylinder prices hiked last month
To recall, on March 1, domestic and commercial LPG cylinder prices were reportedly hiked across India. While commercial cylinder prices went up by Rs. 350.50 per unit, prices for domestic LPG cylinders increased by Rs. 50 per unit. The 14.2kg domestic LPG cylinder currently costs Rs. 1,103 in Delhi, Rs. 1,102.5 in Mumbai, Rs. 1,118.59 in Chennai, and Rs. 1,129 in Kolkata.
Here's how LPG prices are calculated
LPG prices are calculated based on the import parity price (IPP). The LPG retail price is adjusted at the start of every month after taking the global crude oil prices into consideration. The variation in prices across states is due to the value added tax (VAT) and the cost of transportation of respective states, along with the crude oil price in the international market.
