LPG price today: How expensive is commercial and domestic cooking gas in Delhi, Kolkata and other cities after rate cut from July 1 | Today’s news
LPG price today: Commercial and domestic cooking gas rates remained unchanged on July 2, a day after Oil Marketing Companies (OMC) cut the rate of 19 kg commercial liquefied petroleum gas (LPG) cylinders for the first time this year ₹183.50.
The revised price of commercial LPG cylinders is ₹2,930 in Delhi, ₹2885.50 in Mumbai and ₹3081.50 in Kolkata. OMCs have also reduced the price of Free Trade LPG (FTL) cylinder. ₹13, which will now stand ₹808.50 per 5kg cylinder. The latest price cut was preceded by a series of price hikes as state oil refineries update commercial LPG cylinder prices every first day of the month. The rise in prices was the result of geopolitical tensions due to the war in West Asia, which caused disruptions in energy supplies around the world.
Monthly OMC price adjustments reflect global market trends, currency fluctuations and Saudi Aramco’s Official Selling Price (OSP). However, the price of a domestic 14.2 kg LPG bottle remains unchanged after the price increase ₹29 last month on June 7, marking the second increase in four months. At the same time, India’s largest private fuel retailer Nayara Energy cut petrol and diesel prices, becoming the first retailer in more than two years to cut petrol station rates.
On Wednesday, OMCs also revised the price of aviation turbine fuel (ATF) amid oil prices cooling to pre-war levels following signs of progress in US-Iran peace talks. International oil prices fell further on Thursday as tensions in West Asia appeared to ease and oil tanker traffic resumed through the Strait of Hormuz, a critical maritime waterway through which a fifth of the world’s oil and natural gas flows. Oil prices fell by around 1% for the third day in a row.
Brent oil price extends decline
Brent futures fell 77 cents, or 1.1%, to settle at $70.80 a barrel, hitting a four-month low. According to Haitong Futures, this drop in oil prices can be attributed to rising expectations of oversupply and competition for market share.
According to a Reuters report, oil-producing OPEC countries are likely to agree to further increase their production targets from August at their July 5 meeting. As a result of developments regarding the war in West Asia and shipping through Hormuz, UBS cut its Brent forecasts on Thursday. The bank cut its average Brent price forecast by $25 for the September quarter and $10 for the December quarter, expecting the benchmark to average $80 a barrel during the second half of the year and $75 in 2027.
“However, we believe it is premature to assume full normalization and see price risk skewed to the upside with tankers heading to the Persian Gulf lagging outbound tankers,” Reuters quoted UBS as saying.
