New Delhi: The price of commercial LPG cylinders has been decreased by Rs 115.50 with immediate effect from Tuesday. With the price drop, a 19 kg LPG cylinder will now cost Rs 1,744 from Rs 1,859.50 in the national capital Delhi. The prices of domestic cooking gas cylinders will continue to remain steady.
This declaration marks the 7th consecutive reduction in price since the month of June this year, and has come exactly a month after the last cut in prices was declared. In step with softening of international energy prices, rates have come down by Rs 610 per 19-kg cylinder.
Last month, on October 1, the center had declared a reduction of Rs 25.50 in the per-unit cost of a 19 kg commercial cylinder. This had taken the cost of cylinder Rs 1,885 to Rs 1,859.50 in the national capital.
However, rates of LPG used in household kitchens for cooking purposes remained unchanged at Rs 1,053 per 14.2-kg cylinder. This is because the rates of domestic cooking gas were way lower than cost and now with a drop in international prices, they are at breakeven, industry sources said.
Commercial LPG rates, on the other hand, have largely been aligned with cost and so they have moved in tandem with the rise and fall in international prices. Rates differ from state to state depending on the incidence of local taxes. Prices are benchmarked to international rates of jet fuel and LPG, which do not necessarily move in sync with each other. Prices are determined by global demand and supply situations. While commercial LPG rates are revised once a month, ATF prices are changed every fortnight.
