Rs 91.5/cylinder rate cut in commercial LPG; marginal reduction in ATF

New Delhi: In response to softening international prices, the cost of commercial LPG used in hotels and restaurants was reduced by Rs 91.5 per cylinder on Thursday. However, oil companies have not changed the cost of domestic cooking gas and have instead started limiting the number of refills a user can order in a fortnight.

According to a pricing statement from state-owned fuel merchants, the cost of a 19-kg commercial LPG cylinder in the nation's capital has decreased to Rs 1,885 per cylinder from Rs 1,976.50. This is consistent with a lowering of global pricing.

However, rates of LPG used in household kitchens for cooking purposes remained unchanged at Rs 1,053 per 14.2-kg cylinder.

This is because the rates of domestic cooking gas were way lower than cost and now with a drop in international prices they are at breakeven, industry sources said.

Commercial LPG rates, on the other hand, have largely been aligned with cost and so they have moved in tandem with the rise and fall in international rates.

And this difference between a market-priced commercial LPG and below-cost household cooking gas had led to the diversion of cylinders meant for kitchens into commercial establishments. To check this, the state-owned oil firms have now started imposing limits on a 14.2-kg refill a household can order, they said.

Bharat Petroleum Corporation Ltd (BPCL) has limited one refill in 15 days from August 26, and other retailers Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Ltd (HPCL) are likely to follow suit.

Simultaneously, the rates of aviation turbine fuel (ATF) were cut marginally by 0.7 per cent. Jet fuel price was cut by Rs 874.13 per kilolitre, or 0.7 per cent, to Rs 121,041.44 per kl in the national capital.

Rates differ from state to state depending on the incidence of local taxes.

With PTI inputs