Commercial LPG prices slashed; petrol, diesel too cost less

State-run oil and gas marketing companies have announced a sharp reduction  of over Rs130 per cylinder (14.2 kg) for the price of liquefied petroleum gas (LPG) sold to households at market rates and a reduction of around Rs200 per cylinder of LPG sold to commercial and industrial users, effective midnight of 30 November.

Accordingly, a 14.2-kg cylinder of LPG sold at market prices now costs Rs752.00 in Delhi, Rs791 in Kolkata, Rs770.50 in Mumbai and Rs749.50 in Chennai.

LPG sold to households at market prices before the price cut costs consumers Rs883.50 in Delhi Rs925.50 in Kolkata, Rs906.00 in Mumbai and Rs883.00 in Chennai earlier.

LPG in 19-kg cylinders for commercial and industrial uses will cost Rs1,267.00 (down from Rs1,472.50) in Delhi, Rs1,348.50 (Rs1,550.00) in Kolkata, Rs1,344.50 (Rs1,557.50) in Mumbai and Rs1,465.00 (Rs1,682.00) in Chennai from midnight of 30 November.

Subsidised LPG for domestic consumption will continue to cost Rs417.00 in Delhi, Rs419.00 in Kolkata, Rs452.00 in Mumbai and Rs401 in Chennai, from midnight of 30 November 2014, Indian Oil Corporation, the country's largest fuel retailer, stated in a release.

With international crude oil rates slipping towards $70 a barrel, PSU oil companies also decided to reduce the retail price of petrol by 91 paise to Rs63.33 per litre in Delhi, Rs70.73 in Kolkata, Rs70.95 in Mumbai and Rs66.05 in Chennai beginning midnight of 30 November, its seventh straight reduction.

For diesel, the revised prices applicable from midnight of 30 November 2014 are Rs52.51 in Delhi, Rs 57.08 in Kolkata, Rs60.11 in Mumbai and Rs55.93 in Chennai, according to the IOC release.

"The prices of petrol and diesel were last revised downwards from 1 November by Rs2.41 per litre and Rs2.25 per litre, respectively, including state levies in Delhi, on the back of declining international oil prices," Indian Oil Corp said in a release.

"The movement of prices in international oil market and INR-USD exchange rate shall continue to be closely monitored and developing trends of the market will be reflected in future price changes," it added.

This is the seventh consecutive reduction in petrol prices since August and third in diesel in rates since October. Prior to this reduction, petrol price has been cut by a cumulative Rs9.36 per litre since August.

The price of diesel was cut for the first time in more than five years on 19 October, by Rs3.37 a litre, when the government decided to deregulate the fuel (See: Govt deregulates diesel, retail price down Rs3.37 per litre).

This was followed by another reduction on 1 November (Petrol price cut by Rs2.41 per litre; diesel to cost Rs2.25 less)

Last month, the government deregulated diesel prices by linking the fuel cost to market-based pricing.

The price of India's basket of crude on Friday, the last trading day for the week, stood at $72.51 per barrel (about 159 litres).