Commercial LPG and jet fuel prices cut after 6 months; domestic gas unchanged
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New Delhi: State-owned oil marketing companies (OMCs) announced reductions in the prices of commercial cooking gas and aviation turbine fuel (ATF) on Wednesday. This marks the first price cut for commercial LPG cylinders in six months. The reductions, effective immediately, range between Rs 14 and Rs 16 per cylinder. ATF prices have also been lowered, potentially leading to reduced airfares.
In Delhi, the price of a 19-kg commercial LPG cylinder was cut by Rs 14.50, bringing it down to Rs 1,804. Prices in Kolkata, Mumbai and Chennai now stand at Rs 1,911, Rs 1,756, and Rs 1,966, respectively, reflecting reductions of Rs 16, Rs 15 and Rs 14 per cylinder, according to Indian Oil Corporation Ltd data. The last revision in commercial LPG prices occurred on December 1, with an increase of Rs 16 per cylinder.
This reduction offers some financial relief to the hospitality and food service industries, where commercial LPG is a significant expense. Since August, prices had been hiked for five consecutive months. However, domestic cooking gas prices remain unchanged.
Jet fuel price cut
Jet fuel prices, which had risen over the last two months, have also been reduced. In Delhi, ATF prices were lowered by Rs 1,401.37 to Rs 90,455.47 per kilolitre. Similar reductions were made in Kolkata, Mumbai and Chennai, where prices dropped by Rs 1,491.84, Rs 1,349.09, and Rs 1,560.77, respectively. These reductions are expected to ease operating costs for airlines, as fuel accounts for roughly 40% of their expenses.
Global oil price trends
The price cuts align with subdued global crude oil prices, which have remained under $75 per barrel in recent months due to concerns over demand and a global economic slowdown. On Wednesday, the March Brent crude oil contract was priced at $74.64 per barrel.
Despite the adjustments to commercial LPG and ATF prices, there has been no change in petrol and diesel prices. These were last reduced in March by Rs 2 per litre ahead of the general elections.