On December 22, there was a significant adjustment in the prices of Commercial Cooking Gas (LPG). This adjustment, which aligns with international trends, was made to reflect the decreasing benchmarks in the global market accurately.
Commercial LPG Price Reduction:
The commercial version of LPG, primarily utilized in hotels and restaurants, has experienced a reduction in price by ₹39.50 for each 19-kg cylinder. Consequently, the cost has now been adjusted to ₹1,757 in New Delhi, presenting a decrease from the previous rate of ₹1,796.50.
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Domestic LPG Remains Stable:
In contrast, the price of LPG used in household kitchens has remained stable at ₹903 for a 14.2-kg cylinder.
Regional Variances:
The impact of these adjustments differed among regions. In Mumbai, the new price for commercial LPG is ₹1,710 per 19-kg cylinder. Kolkata and Chennai, on the other hand, had rates of ₹1,868.50 and ₹1,929 respectively. It is worth noting that regional differences continue to exist due to disparities in local taxation.
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Factors Influencing Price Changes:
The Saudi Contract Price (CP), an important reference point for LPG pricing, has experienced a recent decrease in value due to concerns about an oversupply. State-owned oil companies, such as Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL), regularly adjust prices according to the average international rates from the previous month.
Petrol and Diesel Standstill:
Despite fluctuations in LPG prices, petrol and diesel prices have remained unchanged for an exceptional period of 21 months. At present, petrol is priced at ₹96.72 per litre in New Delhi, while diesel stands at ₹89.62 per litre.
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Conclusion:
The recent changes in LPG prices can be attributed to the ever-changing dynamics of the global market. As international benchmarks experience fluctuations, it is only natural for the costs at the local level to follow suit. It is of utmost importance for businesses and households to remain well-informed about these shifts to effectively plan their finances.
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