Indian oil marketing companies (OMCs) have slashed the price of the 19 kg commercial LPG (liquified petroleum gas) cylinder by Rs 115.5, with effect from November 1, 2022. The price per unit for the commercial LPG cylinder is now down to Rs 1744 in the national capital, according to the data available on the Indian Oil Corporation’s (IOC) website. The decrease in prices marks the seventh consecutive reduction in LPG cylinder prices since June this year. With the latest reduction, the price for the commercial LPG cylinder is down by Rs 610 since the last uptick.
In the financial capital Mumbai, the rate for the commercial LPG cylinder is now Rs 1696 instead of Rs 1811.5 in the previous month. In Kolkata, the 19 kilogram LPG cylinder is now retailing at Rs 1846, down from 1959 in October. In Chennai, the price per unit for commercial LPG is set at Rs 1893, as compared to the previous rate of Rs 2009.5. The 19 kilogram LPG cylinder is generally used by business establishments such as restaurants. Meanwhile, the capacity of the cylinders used for household purposes is 14.2 kilograms.
As per the latest data available on IOC’s website, no change has been made to the cylinders used in households. The last time LPG prices for the 14.2 kilogram cylinders changed was in July when the rate was hiked by Rs 50. As of July 6, 2022, consumers in Delhi have been paying Rs 1053 for the 14.2 kilogram cylinder.
The oil marketing companies have been reportedly incurring huge losses as the domestic prices for petrol, diesel and natural gas have been immune to the surge in the international markets. On October 12, 2022, the union cabinet approved a one-time grant of Rs 22,000 crore to three OMCs – Indian Oil Corporation, Bharat Petroleum Corporation Ltd, and Hindustan Petroleum Corporation – to cover for the LPG losses incurred by them in the last two years. However, no such grant was announced for losses registered due to petrol and diesel, prices of which are not regulated by the government.