Fuel Price Cut: Commercial LPG Slashed by ₹183, Petrol, Diesel Rates Down

New Delhi (IANS): Commercial establishments and motorists received major financial relief on Wednesday as state-owned oil marketing companies (OMCs) slashed commercial LPG cylinder prices, while private fuel retailer Nayara Energy cut retail petrol and diesel rates. Alongside these consumer-end cuts, the Central government also revised its windfall tax on petroleum exports.

The revised rates came into effect today, July 1, following a decline in international crude oil prices as West Asia tensions eased and key shipping routes reopened.

Commercial LPG Prices Drop by up to ₹183.5

State-owned OMCs reduced the price of 19-kg commercial LPG cylinders by up to ₹183.5 across major cities. This move provides significant relief to restaurants, hotels, and other commercial establishments after multiple price hikes during recent global energy shortages.

The new price breakdown across key cities shows substantial drops:

• Delhi & Lucknow: Slashed by ₹183.5 (Delhi price drops from ₹3,113 to ₹2,930)
• Chandigarh: Slashed by ₹181.5 (New price: ₹2,954.50)
• Kolkata: Slashed by ₹174 (New price drops from ₹3,255.50 to ₹3,081.50)
• Patna: Slashed by ₹173 (New price: ₹3,227)

Note: The price of the 14.2-kg domestic LPG cylinder remains unchanged for household consumers.

To further aid commercial users, the government relaxed supply restrictions after fuel availability improved. Officials restored 50% of supplies to customers whose allocations were previously suspended to prioritize household demand during the West Asia conflict. The government will continue tracking data on commercial LPG consumers to manage future supplies efficiently.

Nayara Energy Slashes Retail Petrol and Diesel Rates

In the first retail fuel price cut since global crude oil prices began to ease, India’s largest private fuel retailer, Nayara Energy, reduced its prices nationwide.

• Petrol: Cut by ₹5 per litre
• Diesel: Cut by ₹3 per litre

The new rates apply across Nayara’s network of more than 7,000 fuel stations, though final retail prices will vary by state depending on local Value-Added Tax (VAT) rates. State-run OMCs have not yet announced matching cuts for domestic retail consumption.

Government Revises Windfall Tax on Fuel Exports

Simultaneously, the Finance Ministry issued a notification modifying the windfall tax (Special Additional Excise Duty or SAED) on exported petroleum products. The government adjusts these rates fortnightly to maintain adequate domestic fuel supplies and discourage excessive exporting during global crises.

The revised export duties are as follows:

• Petrol Exports: Increased to ₹4 per litre (up from ₹1.5 per litre).
• Diesel Exports: Reduced to ₹8.5 per litre (down from ₹14 per litre).
• Aviation Turbine Fuel (ATF) Exports: Reduced to ₹7.5 per litre (down from ₹12.5 per litre).

The ministry clarified that these export tax revisions will not alter the existing excise duties on petrol and diesel sold for domestic consumption.