NEW DELHI, May 1 (PTI): Price of commercial LPG, one which is used by business establishments like hotels and restaurants, on Monday was cut by a steep Rs 171.5 per cylinder and rates of jet fuel (ATF) were reduced by by 2.45 per cent on softening international oil prices.
A 19-kg commercial LPG now costs Rs 1,856.5 in the national capital, down from Rs 2,028, according to price notification from state-owned fuel retailers.
This is the second straight monthly reduction in commercial LPG prices.
Rates were cut by Rs 91.5 per 19-kg cylinder on April 1. The two reductions, however, haven’t neutralised the Rs 350.5 per cylinder hike in prices affected from March 1.
Domestic cooking gas LPG prices remained unchanged at Rs 1,103 per 14.2-kg cylinder in the national capital.
Domestic LPG rates were last changed on March 1, when they were hiked by Rs 50 per cylinder.
State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) revised cooking gas prices on the 1st of every month based on average international prices in the previous month.
Separately, ATF price was cut by 2.45 per cent in line with international trends.
Accordingly, jet fuel rates were reduced by Rs 2,414.25 per kilolitre to Rs 95,935.34 per kl in Delhi.
This is the third straight monthly reduction in rates. Prices were cut by 4 per cent (Rs 4,606.50 per kl) on March 1 and by 8.7 per cent (Rs 9,400.68 per kl) on April 1.
ATF price is revised on the 1st of every month based on the average rate of international benchmark and foreign exchange rates.
International oil prices have erased all gains made since OPEC+ producers announced a surprise production cut earlier last month, as recession concerns continued to weigh on the fuel demand outlook.
Brent, the benchmark for two thirds of the world’s oil, was trading at USD 79.62 a barrel on Monday, down from USD 88 it had hit after OPEC+ producers announced voluntary crude output cuts of 1.16 million barrels per day on April 2.
Petrol and diesel prices, however, continued to remain on freeze for a record 13th month in a row. Petrol costs Rs 96.72 per litre in the national capital and diesel comes for Rs 89.62.
State-owned fuel retailers are supposed to revise petrol and diesel prices daily based on a 15-day rolling average of benchmark international fuel prices but they haven’t done that since April 6, 2022.
Prices were last changed on May 22 when the government cut excise duty to give relief to consumers from a spike in retail rates that followed a surge in international oil prices.