Price of 19 kg commercial bottles reduced by Rs. 5
Refilling of cooking gas or the 14.2 kg of liquefied petroleum gas (LPG) bottles that households use now cost 912 yen in the city.
The price passed the 900 yen mark after national oil marketers Indian Oil, Bharat Petroleum and Hindustan Petroleum increased the cost of unsubsidized bottles by 25 yen each effective August 17.
At a time when many low- to middle-income households are struggling to weather the economic effects of the pandemic, the escalation will heighten their concerns, especially for families whose LPG consumption is high before the winter months.
Sources among cooking gas distributors said, however, that consumers seem to have gotten used to the increase in LPG prices as there was little resistance on Tuesday when deliveries came at the new price (912). This is the unsubsidized price that households that have opted out of subsidization or have not taken advantage of the subsidy due to their income level pay for replenishment. For those who continue to move or are eligible, the grant is negligible.
The unsubsidized domestic refill price was increased six times from 746.50 yen on January 1, including three times in February. The only case of a reduction this year was on April 1, when the refill price fell 10 to 861.50 each. Before Tuesday, the price was increased by 25.50 yen on July 1, bringing the refill cost to 887 yen.
Demand for domestic LPG has increased, said sources, crediting him with working from home and the restrictions on movement during the lockdown. The LPG prices are determined by the international propane and butane prices as well as the exchange rates.
While domestic LPG is a large market by volume, commercial LPG, or the bottles intended for use in commercial establishments such as tea stalls and restaurants, is intense competition between dealers. On Tuesday, the price for standard 19 kg bottles was lowered by the oil companies by 5 each to 1,798.