In the wake of softening international rates, the price of commercial LPG, used by hotels, restaurants and other business establishments, was cut by Rs 36 per 19-kg cylinder on Monday.
Reduction in Commercial LPG Prices
Notably, the reduction in price is only valid for commercial ones, not applicable to the domestic LPG cylinders.
According to a price notification from state-owned fuel retailers, the price of a 19-kg commercial LPG cylinder in the national capital has come down to Rs 1976.50 in Delhi as against ?2012.50 previously.
Similarly, a 19-Kg commercial cylinder will now be available at Rs1936.50 instead of RS 1972.50 in Mumbai.
In the case of Kolkata, a 19-kg cylinder will cost Rs 2095.50 instead of Rs 2132.
At the same time, the price of a 19-kg cylinder will be Rs 2,141 instead of Rs 2177.50, in Chennai from today.
After the reduction, a 19-kg cylinder will cost Rs 2063.50 in Bengaluru and Rs 2197.50 in Hyderabad from today.
Second Reduction
This seems to be the second reduction in rates in a month’s time.
Earlier, the prices were cut by Rs 8.50 per 19-kg bottle on 6 July.
Here you can witness a difference of rates from state to state as it depends on the incidence of local taxes such as VAT.
So, the cost is higher in states with higher taxes.
Oil Prices Dropped
In the meantime, oil prices dropped early on Monday as investors braced for this week’s meeting of officials from OPEC and other top producers on supply adjustments.
For instance, Brent crude futures dropped 63 cents, or 0.6%, to $103.34 a barrel by 0000 GMT. U.S.
Similarly, West Texas Intermediate crude was at $97.87 a barrel, which is down by 75 cents, or 0.7%, after hitting a session low of $97.55 when trading commenced in Asia.
Further, both contracts rebounded more than $2 a barrel on Friday as risk appetite improved among investors.
At the Aug. 3 meeting, two of eight OPEC+ sources in a Reuters survey said a modest increase for September will be discussed while the rest said output would likely be held steady.
It appears that the meeting is arranged after the U.S. President Joe Biden visited Saudi Arabia last month.
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