Customers suffering from excessive fuel prices will be relieved to learn that OMCs have reduced the price of commercial LPG cylinders beginning Tuesday, November 1. The price of a 19-kg commercial LPG cylinder has been reduced by Rs 115.50 per cylinder, effective November 1, 2022.
With immediate effect, the cost of a Commercial LPG Cylinder has been reduced by Rs 115.50 per unit. Notably, since June, the price of the 19 kg commercial LPG cylinder unit has been reduced seven times. The price drop was in line with the drop in global energy prices.
Although domestic cooking gas costs have not changed, OMCs have passed on the benefits of lower international pricing to clients. According to a pricing statement from state-owned fuel merchants, the price of a 19-kg commercial LPG cylinder in the national capital has been reduced from Rs 1,885 to Rs 1,744 per cylinder. Meanwhile, domestic LPG prices have remained steady at Rs 1,053 per 14.2-kg cylinder.
What is LPG or Liquefied petroleum gas?
Liquefied petroleum gas (LPG or LP gas) is a combustible mixture of hydrocarbon gases that includes propane, propylene, butylene, isobutane, and n-butane.
LPG is a fuel gas that is used in heating appliances, cooking equipment, and automobiles. It is becoming more used as an aerosol propellant and a refrigerant, replacing chlorofluorocarbons in an effort to protect the ozone layer. When used as a vehicle fuel, it is commonly referred to as autogas or simply gas.
Many countries utilise LPG for cooking for economic, convenience, or because it is the preferred fuel source.
In India, almost 8.9 million tonnes of LPG were consumed in the household sector between April and September 2016, primarily for cooking. Domestic connections total 215 million (one for every six persons), with more than 350 million LPG cylinders in circulation. The majority of the LPG required is imported. Piped city gas supply is not yet widely available in India. The Indian government subsidises LPG for household users. An increase in LPG pricing has been a politically sensitive issue in India since it has the ability to influence middle-class voting patterns.
People in Mumbai would be able to purchase the cylinder for $1,696 instead of $1,811.50. The 19 kg cylinder is now priced at 1,893 instead of 2,009.50 in Chennai. In Kolkata, individuals will be able to purchase the cylinder for 1,846 instead of 1959, according to the newspaper. The cylinder costs 1,079 rupees in Kolkata.
Meanwhile, the price of 14.2 kilogramme residential LPG gas cylinders has been steady since July. Prices for such cylinders increased by $50 per unit beginning in July. A 14.2 kilogramme household LPG cylinder costs 1,053 in national Delhi. The cylinder costs 1,052 and 1,068 in Mumbai and Chennai, respectively.
Earlier, Information Minister Anurag Thakur said at a news conference on Wednesday that the Indian government had granted a one-time gift of 22,000 crore to state-run fuel dealers for selling cooking gas (LPG) at below-market pricing. At a meeting on Wednesday, the Union Cabinet, led by Prime Minister Narendra Modi, granted a one-time gift to three oil marketing companies: Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL), Thakur said at a news conference.
The subsidy will replace the losses they suffered by selling LPG at a loss to consumers between June 2020 and June 2022. Consumers are sold domestic LPG at government-regulated pricing by the three companies. International LPG prices increased by roughly 300 percent between June 2020 and June 2022.
Oil marketing companies in the country offer 14.2 kg cylinders to domestic families at market prices, while the centre gives subsidies for 12 such cylinders to Pradhan Mantri Ujjwala Yojana recipients each year via direct benefit transfer to their bank accounts.
