State-backed oil marketing companies slashed prices of 19kg commercial LPG cylinders by INR 30 per cylinder from July 1. The 19kg cylinder will now be available for INR 1,646 in Delhi versus INR 1,676 earlier. In Mumbai, the 19kg cylinder will cost INR 1,598 whereas it will cost INR 1,756 in Kolkata.
No change in Domestic Cylinder price
It is said that there will be no change in the prices of 14.2 kg LPG cylinders. Domestic cooking cylinders will continue to retail for INR 803 in Delhi, INR 829 in Kolkata, INR 818.50 in Chennai, and INR 802.50 in Mumbai.
Also Read | US Praises India For The Largest Democratic Exercise
Will the State-owned OMCS revise the prices?
State-owned OMCs like Indian Oil Corporation, Bharat Petroleum Corporation Ltd, and Hindustan Petroleum Corporation Ltd revised the prices of cooking gas on the first of every month based on the average price of Standard international fuel and foreign exchange rate.
Prices change every month?
There are always adjustments in LPG cylinder prices at the start of every month to reflect the dynamic nature of the market. Various factors affect the prices such as International oil prices, taxation policies, and supply-demand dynamics, play a significant role in these pricing decisions. However, the exact reason behind the recent price decrease has not been disclosed, it is evident that oil marketing companies are responsive to the broader economic conditions and markets.
Price cut will boost economic activity
The depletion in LPG prices is unusually significant given the current economic climate. Businesses, especially those who are in the food and hospitality sectors, rely heavily on commercial LPG cylinders. The price cut provides little financial relief, enabling these businesses to manage their operating costs better and potentially pass on some savings to consumers.
The socio-ecological effects
Whenever there is a hike in prices, especially over the last decades it causes socio-ecological crises in places where there are no other alternatives to fuelwood and socio-economic deprivation is common.
Also Read | Kangana And Chirag Shared Friendly Moment In Parliament
When gas prices fall, it is cheaper to fill the tank for both households and businesses and relieves costs on transportation-focused industries like airlines and trucking, but it also puts a damper on the domestic oil industry.
About the Author
Ms Vijaya Pramodini SK, an aspiring journalist, is currently dedicated to her studies in journalism and communication. With a keen eye for authenticity, she strives to uncover and present the real facts, embodying the principles of ethical journalism.
