LPG Price Today in Your City: Domestic and Commercial Cylinder Rates in Delhi, Mumbai, Bengaluru, Kolkata on June 23 | Today’s news
LPG price in your city today: Domestic and commercial Liquefied Petroleum Gas (LPG) cylinder prices remained the same in several Indian cities on Tuesday, June 23. The last rate increase took place on June 7, when the price of a 14.2 kg domestic LPG cylinder increased by ₹29. This was the second revision in three months after the first revision ₹60, which occurred on March 7.
Earlier this month, the price of a 19kg commercial pressure cylinder increased by around 19kg ₹42 due to global power outages, the fourth increase since February 28. Commercial cylinder costs have therefore increased by almost 79% over the past four months as they are based on international fuel benchmarks, transport costs and exchange rate movements. On June 1, the Oil Marketing Companies (OMCs) also increased the prices of 5kg Free Trade LPG (FTL) cylinders by ₹11.
In particular, the prices of commercial LPG cylinders are revised monthly by state-owned OMCs, including Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation. Due to the war in West Asia and the blockade of the Strait of Hormuz, LPG supplies were the worst affected. Before the war, India was highly dependent on imports for 60% of its LPG needs. About 90% of these imports came from West Asia, which followed the Saudi contract price (CP), set by Saudi Aramco at the beginning of each month.
In June, Saudi CP was set at $790 per tonne, about 46% higher than pre-war levels. In the wake of the global energy crisis, India is trying to diversify its LPG imports, tapping Russia, Norway and others, while the US has become its main supplier.
Oil prices fall as investors focus on Hormuz
Brent oil prices fell on Tuesday as investors awaited progress in peace talks between the US and Iran and the resumption of oil flows through the Strait of Hormuz. Brent crude futures were down 0.3%, or 20 cents, at $77.70 a barrel, according to Reuters.
The United States granted Iran a 60-day sanctions waiver on Monday, sending oil prices down more than 3%. “The gradual increase in oil flows through the Strait of Hormuz continues to weigh on the market,” Reuters quoted ING analysts as saying.
Upbeat sentiment flooded the market as two oil tankers carrying less than 2 million barrels of crude passed through the Strait of Hormuz on Monday, signaling that traffic is picking up after weaker flows on Sunday.
Sparta Commodities head of research Neil Crosby said: “Transits seem to have surged in recent days, (which) the market will see as representative of both physical oil, possibly paper oil, and diplomatic progress,” adding: “We feel like we’re stuck in this risk-averse/optimistic bearish sentiment until something changes,” Reuters reported.
