Govt slashes LPG, jet fuel, kerosene prices

Oil marketing companies have reduced the prices of commercial LPG cylinders by ₹135 with immediate effect from today. The 19kg LPG cylinder will now cost ₹2,219 in Delhi as compared to ₹2,354 previously. In Mumbai, the commercial LPG cylinder costs ₹2171.50, down from the previous price of ₹2,307 per cylinder, the data from state-owned Indian Oil shows.

In Kolkata, the 19kg LPG cylinder now costs ₹2,322 as compared to the previous price of ₹2,454, a reduction of ₹132. In Chennai, the commercial LPG cylinder (19kg) now costs ₹2,373, down from the last month's price of ₹2,507, a reduction of ₹134 per cylinder.

There's a marginal increase in the 14.2-kg LPG cylinder as well. As per the last revision on May 19, 2022, the cylinder now costs ₹1,003 in the national capital, up from the last month's price of ₹999.50. In Kolkata, the 14.2-kg cylinder costs ₹1,029, up from ₹1,026 last month. In Mumbai and Chennai, a 14.2 kg LPG cylinder costs ₹1,002.50 and ₹1,018.5, respectively, a cut of ₹3 from the previous price revision.

As part of the recent measures taken by the Centre, Pradhan Mantri Ujjwala Yojana beneficiaries will get ₹200 subsidies on the purchase of 14.2 LPG cylinders. That means the effective price for them would be ₹803 per 14.2-kg cylinder. Since April last year, the 14.2kg LPG cylinder price has increased by ₹193.5 per cylinder.

This is a big relief as no subsidy was paid on cooking gas since June 2020. All users, including Ujjwala beneficiaries, had to pay the market rate for a 14.2 kg LPG cylinder.

AFT & kerosene prices

Aviation turbine fuel (ATF) prices have fallen 1.3% to ₹121,475.74 per kilolitre (Kl) in Delhi from June 1. The ATF prices in Kolkata, Mumbai and Chennai stand at ₹126,369.98 per kl, ₹120,306.99 per kl, ₹125,725.36 per kl, respectively. Overall, ATF prices make up 40% of the total running cost of an airline.

The ATF price for domestic airlines on international run stands at $1,181.86 per kl in Delhi; $1,221.95 per kl in Kolkata; $1,178.61 per kl in Mumbai; and $1,177.20 per kl in Chennai. After the latest revision, the price of non-PDS kerosene stands at ₹1,11,814.23 in Delhi; ₹1,15,263.23 in Kolkata; ₹1,21,245 in Mumbai; and ₹1,15,463 in Chennai.

Fuel prices

Petrol and diesel prices remained unchanged for the 10th straight day today. Petrol in Delhi costs ₹96.72 a litre, while diesel costs ₹89.62 a litre. In Mumbai, one litre of petrol costs ₹111.35, while diesel retails at ₹97.28 per litre. Fuel prices saw a major fall after finance minister Nirmala Sitharaman announced an excise duty cut of ₹8 per litre on petrol and ₹6 per litre on diesel last month. Following the Centre's move, states also cut VAT (value-added tax) on fuel by up to ₹2.28 per litre.

Brent crude hits new level

Brent crude prices soared to $124 a barrel on Tuesday after European Union leaders agreed to ban almost 90% of Russian oil imports by the end of the year. As per the latest data at 0338 GMT, Brent crude for the August contract was trading at $115.88 per barrel, up 28 cents. Brent crude futures for July expired on Tuesday at $122.84 per barrel, up 1%. This comes hours after the European Council agreed in principle on the sixth sanctions package against Russia over its invasion of Ukraine. The sanctions will immediately impact 75% of Russian oil imports. And by the end of the year, 90% of the Russian oil imported in Europe will be banned. US West Texas Intermediate (WTI) crude rose 30 cents or 0.3% to $114.97 per barrel.