The price of Liquefied Petroleum Gas (LPG) Cylinder, with weightage of 19 kilograms, has been slashed by Rs 122. After this decrease in price, the cost of one commercial LPG cylinder in Delhi from June 1 is Rs 1,473.50. Before the decrease in price, a single commercial cylinder used to cost Rs 1,595.50. It must be noted that the cost cut has only been done for commercial cylinders and there is no change in the price of domestic LPG cylinders that weigh 14.2 kilograms.
Here is a look of the price of commercial LPG cylinders in different cities from June 1:
- Delhi - Rs 1,473.50
- Mumbai - Rs 1,422.50
- Kolkata - Rs 1,544.50
- Chennai- Rs 1,603
This is not the first time that the price of the commercial LPG cylinders has been slashed. In May, the price was reduced by Rs 45 per cylinder.
Here is a look at city-wise price of LPG cylinders in May 2021:
- Delhi - Rs 1,595.50
- Mumbai - Rs 1,545.00
- Kolkata - Rs 1,667.50
- Chennai - Rs 1,725.50
Currently, the price of one domestic cylinder in the national capital is Rs 809. According to a report in The Hindu Business Line, this price is 36 per cent higher on a year-on-year basis.
Change in the cost of domestic cylinders is made at the beginning of every month. The revision in the price is done by Oil and Marketing companies (OMCs) at the beginning of each month. Last time, the price of domestic cylinders was slashed was in April 2021. The OMCs had cut down the price by Rs 10 per cylinder. During the initial phase of COVID-19, the price of LPG had sharply declined. However, since November, the cost has been on the rise.
For the unversed, the cost of LPG is calculated as per the import parity price formula. This formula is primarily based on the dollar exchange rate and Saudi Aramco’s rate for propane and butane.