The prices of commercial LPG -- used in establishments such as hotels and restaurants -- were on Saturday cut by a steep Rs 192 per 19-kg cylinder while aviation turbine fuel (ATF) prices were hiked by Rs 5 per litre in line with divergent trends in benchmark rates.
While a 19-kg commercial LPG cylinder in Delhi now costs Rs 2,738 as against Rs 2,930 previously, ATF rates have been raised to Rs 115 per litre from Rs 110, according to price information from state-owned oil firms.
This is the second straight monthly reduction in commercial LPG rates following a Rs 183.5 cut on July 1. In case of ATF, the revision reverses the reduction by a similar proportion that was effected on July 1.
The two reductions in commercial LPG rates on July 1 and August 1 followed the Middle East crisis pushing rates to record highs in June. After the outbreak of the conflict in late February, commercial LPG rates had risen by a massive Rs 1,373 per 19-kg cylinder -- from Rs 1,740.50 in February to Rs 3,113.50 in June.
Alongside, prices of 5-kg market priced LPG cylinder were cut to Rs 762 from Rs 808.50.
These prices -- revised on the first of every month, based on benchmark international prices and foreign exchange rates -- vary from state to state depending on local taxes such as VAT.
Rates of domestic LPG used in household kitchens remain unchanged at Rs 942 per 14.2-kg cylinder. Prices of domestic LPG were last raised by Rs 29 per 14.2-kg cylinder on June 7. Rates had gone up by Rs 60 in March after the Middle East crisis led to supply disruptions and a surge in international energy prices.
A S Sahney, Chairman of Indian Oil Corporation -- the nation's largest oil firm -- on Friday said there was an under-recovery or loss of Rs 503 per 14.2 kg domestic LPG cylinder as rates were way below cost.
Petrol and diesel prices, which were hiked by about Rs 7.50 a litre each in May, too, remained unchanged.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
