Indian state-controlled oil marketing companies have lowered prices of commercial LPG cylinders in December on the back of weaker import costs, according to state-controlled refiner IOC.
This is the third consecutive month of price declines, in line with softening contract prices set by state-controlled Saudi Aramco.
A 19kg commercial LPG cylinder now costs 1,580.50 Indian rupees ($17.60) in Delhi and Rs1,531.50 in Mumbai, down by Rs10 and Rs10.50, respectively, from a month earlier.
Prices in Kolkata and Chennai are at Rs1,684 and Rs1,739.50, down by Rs10 and Rs10.50, respectively, from the previous month.
Prices for 14kg residential cylinders have remained unchanged since April at Rs853 in Delhi, Rs852.50 in Mumbai, Rs879 in Kolkata and Rs868.50 in Chennai.
Residential LPG is used for cooking in homes, while commercial LPG cylinders are mostly used in canteens, offices, colleges, schools, hospitals, restaurants and hotels.
The fall in commercial cylinder prices followed a drop in November contract prices set by Saudi Aramco to $475/t for propane and $460/t for butane, both below market expectations.
Commercial cylinder prices may rise as Saudi Aramco has raised the December propane and butane contract price to $495/t and $485/t.
