State-run fuel retailers have announced a significant reduction of ₹39.50 per 19-kg cylinder in the prices of commercial LPG cylinders, reflecting the drop in fuel rates in international markets. The latest pricing data from Indian Oil Corporation (IOC) reveals revised prices for non-subsidised 19-kg commercial gas cylinders used across hotels, restaurants, and industrial applications.
Effective immediately, the prices will stand at ₹1,757 in Delhi, ₹1,868.50 in Kolkata, ₹1,710 in Mumbai, and ₹1,929 in Chennai. These prices vary due to differing local levies across regions. While the costs of subsidised 14.2-kg LPG cylinders, commonly used for household cooking, remain unchanged, the decline in international fuel prices is expected to alleviate the government’s subsidy burden accordingly.
For general customers in New Delhi, the subsidised 14.2-kg LPG cylinders are priced at ₹903 each, while under the Pradhan Mantri Ujjwala Yojana (PMUY), these cylinders are available at ₹603 each for households in need.
Earlier decisions by the Union cabinet led by Prime Minister Narendra Modi on August 29 resulted in a reduction of ₹200 per 14.2-kg cylinder for all 316.4 million customers. Additionally, the subsidy of ₹200 per refill continued for over 96 million impoverished households covered under the Ujjwala Yojana.
The government had been providing a targeted subsidy of ₹200 per 14.2 kg LPG cylinder for PMUY beneficiaries from May 21, 2022, for up to 12 refills annually for the years 2022-23 and 2023-24. Subsequently, from October 5, 2023, the targeted subsidy amount was increased to ₹300 per 14.2-kg LPG cylinder for all PMUY beneficiaries.
Minister of State for Petroleum, Rameswar Teli, highlighted the country’s reliance on LPG imports, constituting more than 60% of domestic consumption. He emphasized that the domestic LPG price is closely tied to international market rates. The government continuously adjusts the effective consumer prices for domestic LPG in response to global fluctuations.
Teli informed the Lok Sabha that between 2020-21 and 2022-23, the average Saudi CP (an international benchmark for LPG pricing) surged from $415 per MT to $712 per MT. Despite this rise in international prices, the complete increment was not transferred to customers during that period. These measures are aimed at balancing consumer affordability with the impact of global market fluctuations on domestic LPG prices.
Sources By Agencies
