Commercial LPG cylinder prices slashed by Rs. 25.50; details here
What's the story
The government released revised rates of the 19-kilogram commercial LPG cylinders in Delhi by slashing Rs. 25.50 on Saturday, reported ANI.
The price of commercial LPG was reduced last month as well by Rs. 91.50.
While the price of the domestic LPG cylinders remains unchanged, the price of natural gas has been hiked by 40% to record levels on Friday.
Context
Why does this story matter?
In May, cooking gas prices peaked at Rs. 2,354 after being raised twice.
Every household in the country is entitled to 12-14.2-kg LPG cylinders at subsidized rates in a year.
Additional purchases beyond this number are to be made at the market price.
However, the rates of domestic LPG cylinders vary from state to state due to local taxes.
New prices
What are the new prices across cities?
As per Indian Oil Corporation Limited (IOCL), after the price decrease, the 19-kg Indane gas cylinder now costs Rs. 1,859.50 in Delhi.
The prices were reduced by Rs. 36.50 in Kolkata, Rs. 35.50 in Chennai, and Rs. 32.50 in Mumbai.
The current rates are Rs. 1,995.50 in Kolkata and Rs. 1,811.50 in Mumbai, reported AajTak.
Natural gas
CNG, PNG prices likely to rise
With the record hike in natural gas prices, the prices of compressed natural gas (CNG) and piped natural gas (PNG) are expected to soar.
As per the order raising the price of natural gas by the Petroleum Planning and Analysis Cell (PPAC) under the Petroleum Ministry, natural gas will now cost $8.57 per million British thermal units as opposed to the previous $6.1.
Imports
85% of petroleum energy is imported
India relies on foreign purchases to meet approximately 85% of its oil requirements, making it one of Asia's most vulnerable to rising oil prices.
While India has excess oil refining capacity, it does not produce enough LPG to cope with its increasing domestic demands and imports large amounts of it from countries like Saudi Arabia, Livemint reported.