Commercial LPG prices cut by Rs 7; new rate at Rs 1,797 in Delhi

Oil marketing companies (OMCs) have revised the prices of commercial LPG cylinders, reducing the cost by Rs 7 per 19 kg cylinder with effect from February 1. Following this adjustment, the price of a 19 kg commercial LPG cylinder in Delhi now stands at Rs 1,797, down from Rs 1,804.

The pricing revision is part of OMCs' monthly exercise, where Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) update LPG rates based on global oil price fluctuations, tax regulations, and supply-demand dynamics. This practice ensures that domestic and commercial LPG prices remain aligned with international trends.

Impact on businesses

The reduction in commercial LPG prices is a relief for businesses such as hotels, restaurants, and small enterprises, which rely heavily on bulk LPG consumption. However, the price cut is marginal and may not significantly ease operational costs in sectors where fuel expenses form a major component.

Meanwhile, domestic LPG cylinder prices remain unchanged. The government continues to provide targeted subsidies for domestic consumers through the Pradhan Mantri Ujjwala Yojana (PMUY) to ensure affordability for households.

ATF price hike

Alongside the LPG price revision, IOC has raised aviation turbine fuel (ATF) prices by Rs 5,078.25 per kilolitre, bringing the ATF cost in Delhi to Rs 95,533.72 per kilolitre. The increase in jet fuel prices may put upward pressure on airfares, as fuel costs contribute significantly to airline expenses.

With global energy prices fluctuating, further adjustments in LPG and ATF rates could be expected in the coming months. Businesses and consumers will closely monitor future pricing updates to assess their financial impact.