Introduction
The public sector oil marketing companies, which include Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum, have claimed that they will be lowering the prices of the 19 kg commercial LPG cylinders by ₹100 from July 1st. This reduction in the price of the cylinders is quite welcoming, especially for businesses and commercial entities that use the cylinders on a daily basis.
New commercial LPG cylinder prices:
Following the price cut, a 19-kg commercial LPG cylinder now costs
Delhi: ₹ 1,646 (from ₹ 1,676)
Mumbai: ₹1,598
Kolkata: ₹1,756
The price for domestic LPG cylinders remains the same.
The commercial cylinder prices have been cut by between Sh35 and Sh70, but 14.2 kg of domestic LPG cylinders are still priced the same. The current prices for domestic cylinders are:
Delhi: ₹803
Kolkata: ₹829
Chennai: ₹818. 50
Mumbai: ₹802. 50
The stable domestic prices of LPG mean that families do not have to worry about other changes in international fuel prices.
Monthly Price Revision Mechanism
File image of cooking gas cylinders ICO, BPCL, and HPCL periodically review the price of cooking gas, and there are changes in the prices on the first of every month. These adjustments are based on two main factors.
Average Price of Benchmark International Fuel: This corresponds to the global market trend of crude oil and other fuels.
Foreign Exchange Rate: Fluctuations in the exchange rates specifically involving the US currency and the Indian rupees consequently determine the cost of imported goods.
Economic and consumer impact
The current cut in commercial LPG prices by ₹100 is likely to benefit businesses, given that they will be in a position to reduce their operating expenses. This may cause an increase in competition in the market, which will in one way or another cause the prices of goods and services to come down.
