Nagpur: State-owned Oil Marketing Companies (OMCs) slashed the price of 19 kg commercial LPG cylinders by Rs 31 per cylinder with effect from July 1. After this price slash, a 19 kg cylinder will now be available for Rs 1,822 in Nagpur, as against Rs 1,853 earlier.
However, there was no change in the prices of domestic 14.2 kg LPG cylinders. These cylinders will continue to retail for Rs 854.50 in the city. It is to be noted that the state-owned OMCs such as Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the prices of cooking gas on the first of every month based on the average price of benchmark international fuel and foreign exchange rate.
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While the specific reasons for the recent price reduction have not been disclosed by the oil marketing companies, it is often due to lower crude oil prices in the international market. This latest adjustment continues a trend of price reductions in recent months, aimed at providing financial relief to enterprises, particularly in the food and hospitality industries. On June 1, the price of a 19 kg commercial LPG cylinder was lowered by Rs 69.50. Additionally, on May 1, 2024, a reduction of Rs 19 per cylinder was implemented.
The frequent adjustments in LPG cylinder prices, typically occurring at the start of each month, are influenced by a variety of factors. These include fluctuations in international oil prices, changes in tax policies, and varying supply-demand conditions. Despite the lack of detailed reasons for the current price cut, it is evident that oil marketing companies are responding to broader economic circumstances.
These successive price reductions are crucial for businesses facing increasing operational costs in a challenging economic climate. In particular, the food and hospitality sectors, which rely heavily on commercial LPG cylinders, stand to benefit significantly. The reduced prices help these businesses manage their expenses more efficiently, potentially allowing them to offer more competitive prices to their customers.
Prices differ from state to state depending on the incidence of local taxes.
