Oil companies slash commercial LPG cylinder rates by ₹69.5. Details here

Oil marketing companies (OMCs), as part of their monthly review of liquified petroleum gas (LPG) rates, have announced a reduction in the rate of commercial LPG cylinders. The price has been slashed by ₹69.5, with effect from June 1.

The move will offer relief to restaurants, eateries, caterers, and similar commercial enterprises. The reduction in rate has lowered the retail price of 19 kg commercial LPG cylinder to ₹1,676 in New Delhi.

While the rate has been slashed by ₹69.5 by OMCs, the retail price of commercial LPG cylinders will differ from state to state depending on the local taxes.

3rd consecutive reduction

The details behind the price adjustments were not shared, but the rates are usually determined by the OMCs after taking into account an array of factors, ranging from international prices to supply-demand dynamics.

Meanwhile, the rate of LPG cylinders supplied to households has remained unchanged over the past three months. The retail price currently stands at ₹803 per 14.2 kg cylinder in New Delhi.

The Centre had on March 8 – a week before the announcement of general election dates – announced a reduction of ₹100 in the prices of 14.2-kg LPG cylinders used by households.

The price of 5-kg free trade LPG (FTL) cylinders, also referred to as indane cylinders, was reduced by OMCs by ₹7.5 on April 1. The refilling rates of these cylinders range from ₹500-₹700.