The price of commercial LPG used in hotels and restaurants on Thursday was slashed by Rs 91.5 per cylinder on softening international prices, but oil companies have made no changes in rates of domestic cooking gas and rather began imposing limits on refills a user can order in a fortnight.
The price of a 19-kg commercial LPG cylinder was cut to Rs 1,885 per cylinder in the national capital from Rs 1,976.50, according to a price notification from state-owned fuel retailers.
This is in line with softening international prices.
However, rates of LPG used in household kitchens for cooking purposes remained unchanged at Rs 1,053 per 14.2-kg cylinder.
This because the rates of domestic cooking gas were way lower than cost and now with a drop in international prices they are at breakeven, industry sources said.
Commercial LPG rates on the other hand have largely been aligned with cost and so they have moved in tandem with rise and fall in international rates.
And this difference between a market-priced commercial LPG and below-cost household cooking gas had led to diversion of cylinders meant for kitchens into commercial establishments.
To check this, the state-owned oil firms have now started imposing limits on a 14.2-kg refill a household can order, they said.
Bharat Petroleum Corporation Ltd (BPCL) has limited one refill in 15 days from August 26, and other retailers Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Ltd (HPCL) are likely to follow suit.
Simultaneously, the rates of aviation turbine fuel (ATF) were cut marginally by 0.7 per cent.
Jet fuel price was cut by Rs 874.13 per kilolitre, or 0.7 per cent, to Rs 121,041.44 per kl in the national capital.
Rates differ from state to state depending on incidence of local taxes.