Commercial LPG prices in metro cities cut for first time in 6 months; ATF prices also lowered | Mint

New Delhi: In a New Year gift to the people, government-owned oil marketing companies (OMC) reduced prices of commercial cooking gas for the first time in six months on Wednesday with immediate effect. The price cuts ranged from ₹14 to ₹16 per cylinder.

OMCs also reduced aviation turbine fuel (ATF) prices, which may lead to cheaper air fares.

In the national capital, the price of a 19 kg commercial cooking gas cylinder was lowered by ₹14.50 to ₹1,804 per cylinder. Prices were previously revised to ₹1,818.50 on 1 December, when they were raised by about ₹16 per cylinder.

Prices in Kolkata, Mumbai and Chennai stood at ₹1,911, ₹1,756 and ₹1,966, respectively, lower by ₹16, ₹15 and ₹14 per cylinder, according to data on the website of Indian Oil Corporation Ltd.

Commercial LPG is largely used in the hospitality and food & beverage space. This price reduction may ease the expenses of hotels and restaurants. Commercial LPG prices had been increased for five consecutive months since August. Prices of domestic cooking gas, however, were left unchanged.

Jet fuel

ATF prices were cut on Wednesday after they were increased for two consecutive months.

In New Delhi, jet fuel prices were reduced by ₹1,401.37 to ₹90,455.47 per kilolitre. ATF prices in Kolkata, Mumbai and Chennai were lowered by ₹1,491.84, ₹1,349.09 and ₹1,560.77 to ₹93,059.79, ₹84,511.93 and ₹93,670.72 per kilolitre, respectively. Fuel costs account for about 40% of an airline’s expenses.

The price reductions come amid tepid international oil prices. Crude oil prices have largely been below the $75 per barrel mark for the past couple of months, largely due to demand and slowdown concerns globally. The March contract of Brent was at $74.64 per barrel on Wednesday.

Although commercial LPG and ATF prices have been cut, there is no relief in petrol and diesel prices, which were last cut by about ₹2 per litre in March, ahead of the Lok Sabha elections.