LPG price cut: Oil marketing companies slash commercial cylinder rate by ₹183.50 — Check updated price
LPG price cut: Oil marketing companies slashed the price of a 19-kg commercial Liquefied Petroleum Gas (LPG) cylinder by ₹183.50 on Wednesday, 1 July. The
LPG price cut: Oil marketing companies slashed the price of a 19-kg commercial Liquefied Petroleum Gas (LPG) cylinder by ₹183.50 on Wednesday, 1 July. The updated price of commercial LPG cylinders is ₹2,930. This revision marks the first reduction in commercial cooking gas rates this year following a series of hikes in the wake of West Asia war that caused energy supply disruptions across the globe. This price revision will provide a major relief to restaurants, dhabas, hotels, and those involved in the food and beverage business. The reduction follows a series of hikes. Notably, commercial LPG rates in India are revised monthly which track rates set by Saudi Aramco’s Official Selling Price (OSP). However, price of domestic 14.2-kg LPG cylinder remained steady after rates were hiked last month on 7 June in which prices were increased by ₹29, the second increase in last four months.
Check latest city-wise domestic and commercial cylinder rates here The Ministry of Petroleum and Natural Gas last week announced that the Centre has removed all sectoral restrictions on the supply of Non-Domestic Packed LPG and restored supplies to the levels prevailing prior to the West Asia crisis. The press release dated 25 June stated, “the supply of bulk LPG, which had been suspended at the onset of the crisis, has been relaxed by 50% of the pre-crisis consumption levels providing significant relief to commercial and industrial consumers.” With global crude volatility easing and domestic logistics stabilised, Brent crude price fell by almost a third over the past three months. As investors monitor progress in peace talks between the US and Iran and oil tanker traffic flows through the Strait of Hormuz resumes, Brent traded above $73 a barrel.
As US and Iran continue their discussions to reach a more lasting accord, Goldman Sachs Group co-head of global commodities research Samantha Dart told Bloomberg, “We expect that by the end of July this is done,” adding, “Once we have a normalization of flows through the strait, the expectation is that we go into an oversupply.” According to Goldman Sachs' projection, oil surplus will be close to two million barrels a day next year, even after accounting for restocking of global strategic petroleum reserves following the Iran war. Meanwhile, Morgan Stanley has cut its price forecasts for the second time in about two weeks as it warned of a looming oversupply as flows through the strait recover faster than expected.
The BriefWire