LPG Price Drop: The day of June 1 has brought news of relief for small and big restaurants, Dhaba’s, and hotels of the country. Oil companies have made a big cut of ₹ 24 in the price of commercial LPG gas cylinders. Now in Delhi, a 19 kg commercial cylinder will be available for ₹ 1,723.50. These new prices will be effective from June 1. Not only this, air travel has also become cheaper. Let’s know the full details of this ‘fantastic’ change and how it will have a positive impact on your pocket.
Commercial cylinder cheaper for the second consecutive month
This is the second consecutive month when the price of a ‘commercial cylinder’ has been reduced. In early May too, companies had cut the price by ‘₹14.50’ per cylinder. This ‘decisive’ step will have a direct impact on services like hotels, restaurants, and the food industry, where this gas is used on a large scale. This will reduce the operational costs of these businesses, allowing them to provide better services to consumers. This is a welcome economic stimulus.
The aviation sector also gets a big relief
Not only commercial gas, but Aviation Turbine Fuel (ATF) used for air flights has also become cheaper. Its price has been reduced by a whopping 4.4 percent i.e. ₹3,954.38 per kilolitre. Now the new price of ATF has become ‘₹85,486.80’ per kilolitre. This is a ‘big’ relief for airlines like ‘Air India’ and ‘Indigo’, as fuel accounts for 30 percent of their expenses. This will make air travel more affordable.
ATF cheaper for the third time in a row
This is the third consecutive cut in ATF prices. Earlier on April 1, a huge drop of ₹5,870 per kilolitre was witnessed. Earlier, fuel prices had increased at the beginning of the year, but now these continuous cuts are balancing them out. This is a positive trend that will help stabilize costs.
Why are prices falling
The biggest reason behind all these cuts is the fall in global crude oil prices. The price of ‘Brent crude’ in the international market has reached close to $63 per barrel, which is the lowest since April 2021.
According to a report by IANS, the world’s largest oil-producing country ‘Saudi Arabia’ has indicated that it will not make any further cuts and is ready for a long period of low prices. This may also weaken the power of OPEC. This is the result of a dynamic global market.
India gets direct benefit
India imports about 85 (85) percent of its crude oil requirement. In such a situation, when global oil prices fall, India’s import bill reduces. This reduces the current account deficit and strengthens the rupee. Not only this, but due to the fall in oil prices, domestic prices of things like petrol, diesel, and ATF also start coming down, which also controls inflation. This is an important factor for the country’s economic stability.
Excise duty increased, but no shock to the common man
Recently, the government had imposed extra excise duty on petrol and diesel. But this did not cause any shock to the common man, because the government oil companies, ‘Indian Oil’, ‘Bharat Petroleum’, and ‘Hindustan Petroleum’ have decided to bear it themselves. Petroleum Minister Hardeep Singh Puri said that due to falling global crude oil prices, companies can bear this burden. This shows an effective coordination between the government and oil companies.