Commercial LPG cylinder costs reduced by Rs 83, no change in domestic LPG prices

Indian Oil has reduced the cost of commercial cylinders of LPG by about Rs 83. Declaring the news on its website, the oil marketing firm stated that the new rates will be applicable from June 1.

After this newest deduction, the 19 kg a commercial LPG cylinder will retail at Rs 1773 in Delhi compared to Rs 1856.50 earlier. Similarly, a retail cylinder will cost Rs 1,875.50 in Kolkata (Rs 1960.50 earlier), Rs 1,725 in Mumbai (Rs 1808.50 earlier), and Rs 1937 in Chennai (Rs 2021.50 earlier)

However, there has been no change in domestic LPG cylinder prices. Domestic LPG rates were last changed on March 1, when they were hiked by Rs 50 per cylinder.

Similarly, there is no change in petrol and diesel prices, which remain frozen for the 14th month in a row. Petrol costs Rs 96.72 per litre in the national capital and diesel comes for Rs 89.62.

IOC, BPCL, and HPCL had frozen retail prices when international oil prices climbed in the aftermath of Russia's invasion of Ukraine last year. While international oil prices have declined, retail prices continue to be on hold for a record 14th month in a row as they recoup the losses suffered last year.

Prices of crude oil, which is turned into fuels like petrol and diesel at refineries, shot above USD 100 per barrel on concerns of supply disruptions in the aftermath of Russia's invasion of Ukraine in February last year. While there was no supply disruption, rates continued to remain firm for months thereafter.

To insulate domestic consumers, they stopped daily price revisions from April 6, 2022. As a result of selling fuel below cost, IOC, BPCL and HPCL posted a combined net loss of Rs 21,201.18 crore during April-September.