“Significant Increase in Commercial LPG Rates and 5% Surge in ATF Prices”
Indian Oil Corporation Limited (IOCL) raises commercial LPG rates by Rs 209 per cylinder, effective from October 1. Meanwhile, Aviation Turbine Fuel (ATF) prices surge by 5%, marking the fourth consecutive monthly increase. Insights into government’s LPG subsidy and IOCL’s biogas ventures.
In a significant development impacting both businesses and consumers, the state-run oil and gas giant, Indian Oil Corporation Limited (IOCL), has announced a steep increase in the prices of commercial Liquified Petroleum Gas (LPG). Effective from October 1, the price hike amounts to a substantial Rs 209 per cylinder, significantly affecting various sectors reliant on this essential resource.
However, it’s important to note that this price adjustment applies exclusively to commercial LPG, and there has been no corresponding change in the price of domestic LPG. As a result, consumers will continue to enjoy stable pricing for their household LPG needs. The retail cost of a 19 Kg commercial LPG cylinder in Delhi will now stand at Rs 1731.50 per cylinder, up from the previous rates.
LPG holds a versatile role in various sectors, serving as motor fuel, a vital component for cooking, heating, refrigeration, and even high-end industrial processes. Consequently, any fluctuations in its price can have a cascading impact on multiple industries and consumers alike.
In addition to the LPG price adjustment, the Aviation Turbine Fuel (ATF) sector is also witnessing changes. IOCL has hiked the price of ATF by 5%, marking the fourth consecutive monthly increase since July. This adjustment aligns with the trends in international benchmarks and reflects the broader dynamics affecting the aviation industry.
Earlier this year in August, the Union Cabinet introduced measures to alleviate the burden of rising LPG prices on consumers. Under this initiative, all domestic LPG cylinder users across the country were entitled to a subsidy of Rs 200 per cylinder. Furthermore, beneficiaries of the Pradhan Mantri Ujjwala Yojana, a scheme aimed at providing LPG connections to economically disadvantaged households, received an additional subsidy, bringing their total subsidy to Rs 400 per LPG cylinder.
This move, introduced as a Raksha Bandhan and Onam gift, was intended to provide relief to millions of households grappling with increasing energy costs.
In a related development, the government also approved the issuance of 7.5 million additional Ujjwala connections, further extending the reach of the Pradhan Mantri Ujjwala Yojana. This expansion will benefit a total of 103.5 million beneficiaries, underscoring the government’s commitment to promoting clean cooking fuel access.
Beyond these price adjustments and subsidies, IOCL has been making headlines in the energy sector. On September 29, the corporation announced its approval of two joint ventures with private sector players, with the aim of establishing compressed biogas (CBG) plants. These ventures demonstrate IOCL’s commitment to exploring sustainable energy sources and contributing to environmental conservation.
As IOCL navigates the evolving energy landscape and addresses the increasing demand for LPG and aviation fuel, these developments will continue to shape the energy sector’s trajectory, with potential ramifications for industries and consumers across the nation.
Sources By Agencies
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