Oil marketing companies reduce price of commercial cylinder and jet fuel

Petrol and diesel prices remain unchanged after a Rs. 2 per liter cut implemented in mid-March.
Image of LPG cylinders used for representational purpose only.
Image of LPG cylinders used for representational purpose only. Photo | EPS

NEW DELHI: The oil marketing companies (OMCs) announced on Saturday that they would reduce the price of jet fuel and commercial LPG used by hotels and restaurants in the country.

As per the price notifications, a 19-kg commercial LPG used by hotels and restaurants was cut by 69 to Rs 1,676 in Delhi, while ATF (Aviation Turbine Fuel) was cut by Rs. 6,673.87 per kilolitre, or 6.5%, to Rs. 94,969.01 per kl in the national capital. The reduction follows a marginal 0.7 percent (Rs 749.25 per kl) increase on May 1.

The revised price will be applicable today, June 1, 2024. However, the rate of cooking gas used in domestic households remained unchanged at Rs. 803 per 14.2-kg cylinder.

April 1 saw the first reduction in commercial LPG prices since January. The rate had gone up by Rs. 14 per cylinder on February 1 and Rs 25.5 on March 1.

Oil companies such as Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd. (BPCL), and Hindustan Petroleum Corporation Ltd. (HPCL) revise the prices of ATF and cooking gas on the 1st of every month based on the average price of benchmark international fuel and the foreign exchange rate.

Petrol and diesel prices remain unchanged after a Rs. 2 per liter cut implemented in mid-March. Currently, petrol costs Rs 94.72 per liter in Delhi, and diesel is priced at Rs 87.62 per liter.

The government has announced a reduction in the windfall tax on domestic crude oil production to Rs 5,200 ($62.33) per metric ton. However, the windfall tax remains zero on exports of both diesel and aviation turbine fuel.

India introduced the windfall tax on crude oil production and exports in July 2022 to address private refiners prioritizing exports over supplying the domestic market. The recent reductions in the windfall tax reflect declining global oil prices.

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