Commercial gas cylinder rates increased by Rs.43
Commercial gas cylinder rates have been increased by Rs.43 by petroleum companies. In the national capital, the price of a 19kg commercial cylinder is Rs.1736.50. The new prices will be effective from 1 October 2021. Earlier, the price of a 19kg commercial cylinder was Rs.1,693. On 1 September 2021, the price of a commercial cylinder was increased by Rs.75. As per the details available on the official website of Indian Oil, the price of a commercial cylinder in Kolkata is Rs.1,805.50. The price last month was Rs.1,770.50. State-run oil companies revise gas prices based on the fuel rates in the international markets. In the case of a domestic cylinder, the price of a cylinder was increased by Rs.25. In Delhi, the price of a domestic cylinder is at Rs.884.50.
Commercial and domestic LPG prices increased in India
On 1 October 2021, petroleum companies increased the prices of commercial and domestic LPG cylinders. The price of a domestic LPG cylinder has been increased by Rs.25. In Delhi, domestic LPG cylinder rates are at Rs.884.50. The price of a commercial cylinder in Delhi has been increased by Rs.75 and is at Rs.1,693. According to the details available on the official website of India Oil, the price of a domestic cylinder in Mumbai, Chennai, and Kolkata are at Rs.884.50, Rs.900.50, and Rs.911, respectively. The price of a commercial cylinder in Mumbai, Chennai, and Kolkata are at Rs.1,649.50, Rs.1,831, and Rs.1,770.50, respectively.
LPG price increased by Rs.15 in the country
On Wednesday, the price of Liquefied Petroleum Gas (LPG) was hiked by Rs.15 across the country. In Delhi, the rate of 14.2 kg domestic non-subsidized LPG cylinders stood at Rs.899.50 following consecutive increases in the price. The cost of a 5 kg cylinder now stands at Rs.502. The revised prices of cooking gas have into effect from today. It needs to be mentioned here that oil marketing companies had increased the price of LPG by Rs.25 in the months of August and September.
The prices of Compressed Natural Gas (CNG) and domestic PNG was increased by Rs 2 per kg with effect from October 5. Following the increase, all-inclusive prices of Compressed Natural Gas (CNG) will go up to Rs 54.57 per kg while the rates of domestic Piped Natural Gas (PNG) will be up to Rs.32.67/SCM (Slab 1) and Rs.38.27/SCM (Slab 2), respectively. The price of CNG and PNG in the national capital was up by Rs.2.28 and Rs.2.10 per kg.
LPG prices expected to double up in the next six-monthly review
As per rating agency Icra, with Asia's spot LNG rates soaring to multi-year summer highs due to strong regional demand and surging gas prices in European gas hubs during the month of August, domestic gas prices will likely double when the next six-monthly review takes place. The new domestic gas prices will be effective October 1 as per the agency. Icra's report suggests that prices in Henry Hub rose to $4.2 per mmbtu (million British thermal units) in August fuelled by strong exports and a heatwave in the US. With inventories in the US and Europe continuing to decline, it has contributed to the surge.
In India, prices for domestically produced gas was fixed at $1.79 per mmbtu for 1 April to 30 September. However, the trend likely to reverse now as city gas distributors have started increasing the prices. It must be mentioned here that Gujarat Gas has raised prices by up to 15 percent for piped natural gas while Indraprastha Gas Limited has also hiked the rates.
Cooking Gas Cylinders Now Costs More by Rs.25
All petroleum companies have now increased the rate of a subsidised liquefied petroleum gas (LPG) cylinder by Rs.25 per cylinder. The price of the subsidised 14.2 kg LPG cylinder will be Rs.884.50 per cylinder in the capital. This will be the second rate hike by the gas retailers within one month. The gas companies had been hiked the rate of LPG cylinder by Rs.25 per cylinder. The rate of 19 kilogram commercial cylinder had been increased by Rs.19 per cylinder and will cost Rs.1,693 per cylinder.
LPG Cylinder Rates Remain Unchanged in August
On Saturday, the monthly revision of the prices for LPG cylinder was made and the state-owned oil prices had been unchanged for the month of August. The rates are always revised at the beginning of every month. This is based on the changes in the international oil rates and also the value of the Indian Rupee against the U.S. Dollar.
LPG cylinder prices to increase in July
According to the Indian Oil Corporation, the price of LPG cylinder was increased from 1 July and the market price of 14.2 kg domestic LPG cylinder was increased to Rs.594 from 1 July in the national capital region compare to its previous price of Rs.593.
LPG prices have been increased for the second consecutive month and the price of the cylinder was increased by Rs.11.50 per cylinder in Delhi. The price of LPG cylinders has been increased in Kolkata, Mumbai and Chennai by Rs.4.5 to Rs.620.50 in Kolkata, by Rs.3.50 to Rs.594 in Mumbai and Rs.4 in Chennai to be priced at Rs.610.50 in Chennai.
The price of 19kg cylinders which are used in hotels has been made cheaper by Rs.4 in the National Capital Region and its prices increased in Kolkata, Mumbai and Chennai. In New Delhi, the price has reduced to Rs.1,135.50 from Rs.1,139.50.
Cooking gas prices increase due to global factors
Even though the prices of oil in the international markets, the prices of cooking gas have increased in India. The cost of crude imports in terms of the rupee has increased by 69% over the last two months.
The prices have cooking gas have been increased by Rs.11.50 for a cylinder. According to a statement given by Indian Oil Corporation, for the month of June 2020, there has been an increase in the prices of LPG in the international markets. Therefore, the prices of LPG in Delhi have been increased by Rs.11.50 for a cylinder. Therefore, the prices of cooking gas in Delhi has been increased to Rs.593 for a 14.2 kg. The prices of cooking gas in other states will vary depending on the taxes that are being levied. Last month the prices of cooking gas were reduced by Rs.162.50 and were at Rs.581.50 due to a decline in prices in the international markets. The benchmark of Brent crude oil prices reduced from $51.90 for a barrel to below $20 for a barrel between 2 March 2020 and 21 April 2020.
Sale of petrol and diesel down during lockdown while LPG sales witness a surge
In the country, amidst the lockdown due to COVID-19, the sale of petrol and diesel has dropped extensively by 61% and 56.5% respectively. In April, the price of fuel has come down to a great extent but showed an improvement in demand in the latter half of the month with lockdown restrictions being eased in a few states.
With the lockdown in effect, the sale of fuel has slipped with people remaining indoors and vehicles not being allowed on the roads. Not only so, but the work in factories have also come to a halt along with the aviation industry at a standstill. With the partial easing of the ongoing lockdown in a few states has marginally improved the demand for fuel.
The sale of petrol saw a 61% drop for the month of April and was considerably better than the drop in the first half of the month at 64%. Diesel sales also slumped by 56.5% compared to a 61% dip in the first half of April.
However, on the other hand, the demand for LPG has seen a massive surge increasing by 21% in the first half of April with many people resorting to panic buying. With the lockdown in place, the demand for LPG has increased heavily once the lockdown was announced. However, the sales growth is back to normal with the country getting accustomed to lockdown protocol.
Price of non-subsidised LPG dips by Rs.162
The government of India, amidst the lockdown due to COVID-19, has provided relief to the people of the country by reducing the price of non-subsidised LPG cylinders by Rs.162.50 per cylinder. This price will be applicable in the metro cities of Delhi, Mumbai, Chennai and Kolkata. The price of LPG has gone down in light of the recent dip in international crude prices.
This reduction will mark the third consecutive time where the price of LPG cylinders has been reduced for non-subsidised cylinders. With the outbreak of COVID-19 affecting the world, the demand for fuel has gone down extensively with little to no vehicles operating on the roads along with factories at a halt. Brent crude oil prices dipped to hit its lowest in 20 years at $15.98 a barrel. However, it soon recovered and was priced at $26.43 a barrel.
Non-subsidised LPG cylinders will be sold at Rs.581.50 per cylinder of 14.2kg in Delhi compared to its previous selling price of Rs.744. According to the statement issued by the state-owned oil firms stating the prices, this will be the steepest reduction in the price of non-subsidised gas ever in the country beating the rate cut which occurred in January 2019 where there was a price drop of Rs.150.5 per cylinder.
Prices of LPG cylinders reduced for the second time in two months
Following a decline in prices in the international markets, the prices of non-subsidised cooking gas in the Indian market have been reduced by Rs.61.50 for a cylinder. The new prices came into effect from 1 April 2020. The 14.2-kg cylinder in Chennai, Kolkata, Mumbai, and Delhi will cost for Rs.761.50, Rs.774.50, Rs.714.50, and Rs.774, respectively. The new prices will be applicable to about 1.5 crore customers who are not eligible for subsidy. Cooking gas prices have been raised for customers who are eligible for subsidy by Rs.4 per month for the last six months.