Commercial LPG Cylinders Get Cheaper: Prices Slashed By Rs 51.50, Domestic Remains Unchanged

New Delhi: The oil marketing companies have provided another major respite to businesses and commercial enterprises as they announced a reduction of over Rs 51 in the prices of 19 kg commercial LPG cylinders. The new prices, which will be effective September 1, will witness the retail sale price of a commercial LPG cylinder in Delhi being Rs 1580, reflecting a cut of Rs 51.50 per cylinder. The price revision is part of the regular monthly adjustments linked to global fuel benchmarks and input costs.

The reduction in commercial LPG prices is expected to bring some relief to hotels, restaurants, and small-scale food businesses that heavily rely on commercial cylinders for their daily operations. The industry insiders believed that although the cut is modest, it will marginally ease operational costs, especially in urban centres where demand is high. The business, with the latest price cut, can expect to save on its fuel expenses, which could lead to increased profitability.

Domestic Cylinder Prices Remain Unchanged

While commercial LPG cylinder prices have been reduced, the prices of 14.2 kg domestic LPG cylinders used for household cooking remain unchanged. Though the business establishments have been given major respite, the domestic consumers will not see any relief or increase in their kitchen fuel bills at the start of the new month. The domestic LPG prices are closely monitored for public welfare considerations, which might be the reason for the unchanged prices.

The LPG rates are revised monthly by oil marketing companies based on international energy price movements and fluctuations in foreign exchange rates. The commercial cylinder prices are more directly aligned with prevailing global trends, which is reflected in the recent price cut. The mechanism ensures that prices are adjusted according to global market conditions, providing a fair reflection of the current market rates.

The reduction in commercial LPG prices could have a positive impact on the service industry, particularly hotels, restaurants, and small-scale food businesses. These businesses, with lower fuel costs, might be able to increase their profit margins or even reduce their prices, making them more competitive in the market. 

Major Price Cuts In Commercial LPG Cylinders Since June

The Oil Marketing Companies (OMCs) have been consistently reducing prices of commercial LPG cylinders since June. This trend continues with recent price cuts, including a reduction of Rs 33.50 on August 1, which follows a significant decrease of Rs 58.50 on July 1.

Earlier reductions were also notable, with a Rs 24 cut in June that brought the price down to Rs 1,723.50. In April, the price of commercial LPG cylinders stood at Rs 1,762. The price adjustments have not been uniform, however, with a small reduction of Rs 7 in February being partially reversed by a Rs 6 increase in March.

These price revisions reflect fluctuations in global fuel benchmarks and input costs, providing relief to commercial consumers.

Further details regarding the price cut are awaited.