LPG price today: How costly is commercial and domestic cooking gas in Delhi, Kolkata, other cities after 1 July rate cut

LPG price today: The commercial and domestic cooking gas rates remained unchanged on 2 July, a day after Oil Marketing Companies (OMCs) for the first time this year slashed 19-kg commercial Liquefied Petroleum Gas (LPG) cylinder rate by ₹183.50.

The adjusted price of commercial LPG cylinders is ₹2,930 in Delhi, ₹2885.50 in Mumbai and ₹3081.50 in Kolkata. OMCs also reduced price of Free Trade LPG (FTL) cylinder by ₹13 which will now cost ₹808.50 per 5-kg cylinder. The latest price reduction was preceded by a series of price hikes as state-owned oil refiners update the prices of commercial LPG cylinders on the first day of every month. The price hikes were a results of geopolitical tensions due to the West Asia war that caused energy supply disruptions across the globe.

OMCs monthly price adjustments reflect global market trends, currency fluctuations, and Saudi Aramco's Official Selling Price (OSP). However, price of domestic 14.2-kg LPG cylinder remains unchanged after prices were increased by ₹29 last month on 7 June, which marked the second increase in last four months. At the same time, India's largest private fuel retailer Nayara Energy slashed petrol and diesel prices, becoming the first retailer in more than two years to reduce pump rates.

Check latest city-wise domestic and commercial cylinder rates here

On Wednesday, OMCs also revised price of Aviation Turbine Fuel (ATF) amid cooling of crude price to pre-war levels following signals of progress in US-Iran peace talks. As tensions in West Asia seem to be easing and oil tanker movement resumes through the Strait of Hormuz, critical maritime waterway through which one-fifth of world's oil and natural gas flow takes place, international oil prices pulled down further on Thursday. Oil prices declined by about 1% for a third consecutive day.

Brent crude price extends decline

Brent futures dropped 77 cents or 1.1% to settle at $70.80 a barrel, hitting its lowest levels in four months. According to Haitong Futures, this drop in crude prices can be attributed to growing expectations of oversupply and competition for market share.

As per Reuters report, OPEC oil-producing countries will likely agree to a further hike in their output targets from August during their meeting on 5 July. In the wake of developments over West Asia war and traffic through Hormuz, UBS on Thursday cut its Brent forecasts. The bank slashed its average Brent price forecast for the September quarter by $25 and for the December quarter by $10, expecting the benchmark to average $80 a barrel during the second half of the year and $75 in 2027.

"Despite this, we believe it is premature to assume a full normalisation, & see price risk skewed to the upside noting that inbound tankers to the Persian Gulf have lagged outbound tankers," Reuters quoted UBS' statement.