Mumbai: In one of the biggest price cuts in non-subsidised cooking gas cylinders in recent times, oil marketing companies (OMCs) slashed the price of a 14.2 kg domestic liquefied petroleum gas (LPG) cylinder by almost 15% on Monday.

Consumers in Delhi will now pay 752 per cylinder as against 883.50 charged till 30 November. This price is applicable to those who have exhausted the 12-cylinder cap on subsidized cooking gas allowed to a household in a year.

In Mumbai, consumers will pay 770.50 per non-subsidised cylinder as against 906 earlier, according to the information available on the Indian Oil Corporation Ltd (IOCL) website.

IOCL is India’s biggest OMC, the other two being Bharat Petroleum Corp. Ltd (BPCL) and Hindustan Petroleum Corp. Ltd (HPCL).

The OMCs also slashed the price of aviation turbine fuel (ATF) by 4.1% to 59,943 per kiloliters in New Delhi from 62,537.93 per kilolitres.

The news comes just a day after the OMCs cut the price of diesel and petrol after the Petroleum Planning and Analysis Cell (PPAC) projected the Indian crude oil basket price at $70 per barrel for the coming fortnight.

IOCL said on Sunday that it has cut the price of petrol by 91 paise a litre, the seventh reduction since August, and diesel by 84 paise per litre, the third straight cut. The other two OMCs followed suit.

“Fuel costs approximately 45% to 55% of the revenue of domestic players (aviation companies). A 4% reduction in the fuel cost may potentially add around 2% to the operating margin. However, given the competitive intensity among existing players, with new players coming in or expanding their scope, it is possible another wave of price war starts, in which case airlines’ balance sheet will continue to bleed unabated," said Deep Narayan Mukherjee, senior director (corporates) at ratings firm India Ratings and Research Pvt. Ltd.

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