New Delhi: In a move that is likely to bring some relief to commercial establishments, state-run oil marketing companies (OMCs) have announced a reduction in the price of 19 kg commercial Liquefied Petroleum Gas (LPG) cylinders by ₹7. The new prices came into effect on February 1, 2025, just ahead of the Union Budget presentation.
This is the second consecutive month that OMCs have reduced the prices of commercial LPG cylinders. The previous revision, which came into effect on January 1, 2025, saw a reduction of ₹14.50 in Delhi, ₹15 in Mumbai, ₹16 in Kolkata, and ₹14.50 in Chennai.
New Prices in Major Cities
Following the latest revision, the price of a 19 kg commercial LPG cylinder in Delhi has been reduced to ₹1,797 from ₹1,804. The new prices in other major cities are as follows:
- Mumbai: ₹1,756
- Kolkata: ₹1,911
- Chennai: ₹1,966
Impact on Businesses
The reduction in commercial LPG prices is expected to provide some respite to businesses, particularly those in the hospitality sector, such as hotels and restaurants, which rely heavily on LPG for their operations. The lower prices will help them reduce their input costs and improve their profitability.
“This is a welcome move by the government,” said a hotel owner in Delhi. “The reduction in LPG prices will help us to manage our expenses better and offer more competitive prices to our customers.”
Reasons for the Price Cut
The OMCs have not officially stated the reasons for the price cut. However, it is believed that the reduction is in line with the softening of international oil prices. The prices of LPG in India are largely determined by global oil prices and the exchange rate of the rupee against the US dollar.
No Change in Domestic LPG Prices
While the prices of commercial LPG cylinders have been reduced, there has been no change in the prices of domestic LPG cylinders, which are used in households for cooking. The price of a 14.2 kg domestic LPG cylinder in Delhi remains unchanged at ₹803.
Aviation Turbine Fuel (ATF) Prices Increased
While the OMCs have provided some relief to commercial establishments by reducing LPG prices, they have also increased the prices of aviation turbine fuel (ATF), or jet fuel, by ₹5,078.25 per kilolitre, or 5.6 percent. The new ATF price in Delhi is ₹95,533.72 per kilolitre.
The increase in ATF prices is likely to have an impact on the aviation sector, as it will increase the operating costs of airlines. This could lead to an increase in airfares in the future.
Final Thought
The reduction in commercial LPG prices is a welcome move by the government, as it will provide some relief to businesses. However, the increase in ATF prices is a cause for concern, as it could lead to an increase in airfares. It remains to be seen what impact these price revisions will have on the overall economy.
