LPG Prices Today, June 24: Domestic and Commercial Rates in Delhi, Mumbai, Bengaluru, Kolkata and Other Cities | Today’s news
LPG prices today, June 24: Domestic and commercial liquefied petroleum gas (LPG) cylinder costs remained unchanged on Wednesday, June 23, even as global oil prices fell further on progress in US-Iran peace talks. Since June 7, the price of cooking gas has been stable. In the latest domestic price revision of LPG cylinders, the Oil Marketing Companies (OMCs) increased the price of cylinders by 14.2 kg by ₹29 due to serious deficiencies. After the first revision, this was the second increase in three months ₹60, which was released on March 7.
The commercial cost of a 19 kg bottle increased by roughly a little more ₹42 after the latest revision due to rising energy costs and disruption of supplies through the Strait of Hormuz transit route. Energy supplies from West Asia tightened and LPG imports fell to as low as 696,000 tonnes in April from 2 million tonnes in the month due to the US-Iran war. Over the past four months, the cost of a commercial cylinder has risen by nearly 79% as it tracks the Saudi Contract Price (CP), set by Saudi Aramco at the beginning of each month.
How many India-bound vessels have passed through Hormuz since the US-Iran deal?
A total of eleven India-bound ships passed through the Strait of Hormuz after the US and Iran signed a peace deal last week. Speaking at a press conference on Tuesday, Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal said, “Since the MoU was signed on June 17, 11 India-bound vessels have passed through the Strait of Hormuz,” PTI reported.
The ships that have successfully transited the Persian Gulf include three Indian-flagged oil tankers, each carrying over 285,000 MT (metric tons) of oil; one foreign-flagged LPG carrier, one foreign-flagged oil tanker and six foreign-flagged bulk carriers transporting fertilizers. He further noted that 10 Indian-flagged vessels are still in the Persian Gulf region, while two have arrived there recently.
Is there any permanent alternative to West Asian LPG for India?
India’s LPG imports from the US are expected to reach 1 million metric tons in June, a record high, Reuters reported, citing industry sources. At the same time, supplies from the UAE have started to recover to around 300,000 to 400,000 tonnes this month, the report said, adding that OMCs will also source about 45,000 tonnes of LPG from Kuwait in June.
Before the US-Iran war and the Strait of Hormuz blockade, India was heavily dependent on LPG imports to West Asia, nearly 90% of which passed through this trade route. In May, imports recovered to 1.15 million tonnes as India imported 648,300 tonnes of LPG from the US and 134,700 tonnes from the UAE, according to Kpler data.
On the diversification of LPG imports in India, Pulkit Agarwal, head of content for India at S&P Global Energy, said, “The Middle East continues to remain and today is still one of the most reliable and the only sources of LPG that can supply the kind of LPG that India needs,” ANI reported.
According to Pulkit Agarwal, while India tried to diversify its imports and seek alternative markets during the power disruption, these sources could not fully compensate for reduced supplies from West Asia. He argued that physical constraints limit the volume of LPG that India can source.
