Commercial LPG prices increased by ₹10 per cylinder; Jet fuel prices rose 5.6% | Today’s news
New Delhi: State-run oil marketing companies on Tuesday hiked the prices of commercial LPG cylinders by around ₹10 per cylinder in key metro cities. Jet fuel prices for domestic airlines were also increased by more than 5%.
In the state capital, the price of a 19kg commercial bottle was increased by ₹9.5 to ₹2,747.50 per cylinder. The price of a 5kg FTL (free trade LPG) cylinder has also been increased ₹2 to ₹764. The price increase comes after two consecutive price cuts in July and August. In July, the prices of 19 kg of commercial LPG were reduced by ₹183.50 and was further reduced in August ₹192.
Commercial LPG prices now stand in Kolkata, Mumbai and Chennai ₹2,884.00, ₹2,701.00 a ₹2,916.50 per cylinder, more o ₹11.5, ₹9.5 a ₹10.5, respectively from August.
Rising international prices
The increase follows a rise in international LPG prices. Over the past month, benchmark Saudi contract prices (CP) for LPG have increased by $5 per metric ton for propane and $20 per metric ton for butane.
LPG supplies were among the areas most affected by the war, as India relied on West Asia for about 90% of its cooking gas imports prior to the conflict. The main suppliers were Qatar, Saudi Arabia, the United Arab Emirates and Kuwait. During the conflict, the US emerged as India’s largest supplier of LPG.
India imports about 65% of its annual LPG requirement of 33 million tonnes, resulting in an import bill of nearly $11 billion. However, domestic LPG prices remained unchanged.
Growing consumption
Data from the Petroleum Planning & Analysis Cell (PPAC) shows that LPG consumption in India rose to a six-month high in July and provisionally reached around 2.37 million tonnes (mt), up 8% month-on-month. However, usage fell by almost 16% year-on-year.
The Ministry of Petroleum and Natural Gas recently informed Parliament that state-owned oil marketing companies (OMCs) have amassed more than ₹59,000 crore in under-revenues from sales of domestic cooking gas as on July 31, which is more than approx. ₹51,000 crore at the end of June as the war in West Asia disrupted LPG supplies and pushed up global prices.
Meanwhile, OMCs have increased jet fuel prices for domestic airlines in the state capital by ₹6.28 per liter, or 5.46%, to ₹121.28 per litre.
ATF prices have been increased by ₹5 per liter this August after a reduction in July. The continued rise in jet fuel prices is significant for the aviation industry, as fuel accounts for roughly 40% of an airline’s total operating costs.
