Oil and marketing companies on Tuesday reduced the price of each commercial LPG cylinder by ₹122.
After this sharp reduction, a 19kg cylinder in Delhi is now priced at ₹1,473.5. The price of 14.2kg domestic cylinders remains unchanged in Delhi at ₹809, which is 36 per cent higher on a year-on-year basis.
The OMCs make any revisions to the domestic price of LPG cylinders at the start of every month. Most recently, the price of domestic cylinders had been reduced by ₹10 in April.
After falling sharply during the initial coronavirus outbreak, the prices began climbing up since the end of November last year, when a domestic cylinder in Delhi cost ₹594.
The LPG prices are calculated according to the import parity price formula based on the dollar exchange rate and Saudi Aramco’s rates for propane and butane.
On Monday, Saudi Aramco raised the June contract prices for propane by 7 per cent month-on-month to $530 per tonne and for butane by 10 per cent to $525 per tonne.