New Delhi: Prices of commercial LPG, the one used in hotels and restaurants, were cut by Rs 183.50 per 19-kg cylinder on Wednesday — the first reduction in rates this year.
Commercial LPG now costs Rs 2,930 per 19-kg cylinder, oil companies said.
Commercial LPG rates hit an all-time high of Rs 3,113 per 19-kg cylinder last month as the West Asia crisis fueled a spike in crude oil prices.
This is the first reduction in commercial cooking gas rates this year following a series of hikes in the wake of the West Asia crisis that caused energy supply disruptions across the globe.
Commercial LPG rates are revised on the 1st of every month based on average benchmark rates in the previous month.
However, the price of domestic 14.2-kg LPG cylinders remained unchanged at Rs 942. Its rates were last hiked by Rs 29 on June 7.
The latest reduction in commercial LPG prices comes after a series of price changes in recent months. Earlier, in June, domestic LPG prices were increased by Rs 29 per cylinder while the price of a 14.2-kg domestic LPG cylinder in Delhi rose to Rs 942 from Rs 913.
Oil companies had also raised LPG prices by Rs 60 per cylinder on March 7, following disruptions in global energy markets linked to the conflict in West Asia.
In April, oil marketing companies increased the prices of commercial LPG gas cylinders by Rs 195.50 across metropolitan cities amid tensions in West Asia. With that revision, commercial LPG prices were raised to Rs 2,208 in Kolkata, Rs 2,031 in Mumbai, and Rs 2,246.50 in Chennai.
Oil marketing companies raised the price of the 19-kg commercial LPG gas cylinder by Rs 111 in January. Following the revision, the retail price of a 19-kg commercial LPG cylinder in Delhi stood at Rs 1,691.50. Alongside the increase in commercial LPG rates, the price of the 5-kg Free Trade LPG (FTL) cylinder was also raised by Rs 27, effective January 1.
The revision in commercial LPG prices is significant for sectors that depend heavily on such cylinders, including eateries, catering services and small businesses, as fuel accounts for a major share of their operating costs.
