LPG Prices Today in Your City: Domestic and Commercial Cylinder Rates in Delhi, Mumbai, Bengaluru, Kolkata on June 17 | Today’s news
LPG Prices Today, June 17: Domestic and commercial Liquefied Petroleum Gas (LPG) cylinder costs remain unchanged on Wednesday, June 17, following the last hike on June 7. After the latest revision of domestic and commercial LPG cylinder rates, the price of a 14.2 kg domestic LPG cylinder has increased by ₹29 and commercial LPG rates were pushed up ₹42 to ₹53.50 per cylinder.
State-owned oil marketing companies (OMCs), suffering a severe under-recovery due to global oil price volatility, have decided to pass on part of the price hike to consumers. After the latest hike, domestic LPG prices rose for the second time in three months since the start of the US-Iran war on April 28. The prices of commercial LPG cylinders have undergone 4 consecutive monthly revisions which have seen the prices almost double.
The government continues to absorb a major price shock from the war in West Asia as oil companies lose roughly ₹650 crore per day as retail rates lag costs. According to the Ministry of Petroleum and Natural Gas, the cost of supplying a 14.2 kg cylinder has increased to more than ₹1,600.
The volatility in fuel prices has come as a result of disruptions to energy supply chains across the Strait of Hormuz, a strategic waterway through which one-fifth of global oil and gas exports take place.
Amid the ongoing G7 summit in France, Prime Minister Narendra Modi and his Canadian counterpart Mark Carney reviewed progress on bilateral economic cooperation, including trade arrangements on liquefied natural gas (LNG), liquefied petroleum gas (LPG) and coal.
Markets are bullish on an interim US-Iran war deal
Optimism about the US-Iran deal triggered relief on Wednesday as Brent crude fell below $80 after peaking at $119 a barrel from $70-72 after the war break. The rupee appreciated 31 paise to 94.29 against the US dollar in early trade ahead of an interim deal between the US and Iran to end the war.
Before the war, India was heavily dependent on oil imports, with 88 percent of its oil coming from Gulf producers whose shipments passed through Hormuz. India was 60 per cent dependent on imports for its LPG needs, with 90 per cent coming through the Gulf Strait. India witnessed an energy crisis after LPG supplies and natural gas flows from Qatar, India’s largest supplier of liquefied natural gas (LNG), were disrupted.
To ensure the availability of alternative costs, Indian refiners have increased collaboration with suppliers in various geographies, including Russia, Africa, the United States and Latin America. In order to secure natural gas supplies, buyers have explored other purchasing options and closely monitored LNG spot markets.
