In a move that will impact businesses and commercial establishments, the price of commercial liquefied petroleum gas (LPG) cylinders has been increased by Rs 42 per cylinder. The revised rates came into effect from the beginning of the month, as per the latest notification from oil marketing companies. However, domestic cooking gas cylinders, which are used by households, have not seen any change in their prices.
Details of the Price Revision
The price of a 19-kg commercial LPG cylinder has been raised by Rs 42, taking the effective cost to a higher level across major cities. In the national capital, Delhi, the new price for a commercial cylinder is now Rs 1,825.50, up from the previous Rs 1,783.50. Similarly, in Mumbai, the price has increased to Rs 1,783 per cylinder from Rs 1,741, while in Kolkata, it now stands at Rs 1,920.50, and in Chennai, at Rs 1,965.50.
This hike comes as part of the monthly revision of LPG prices, which are linked to international benchmark rates. The increase is attributed to the rise in global crude oil prices and the strengthening of the dollar against the rupee, which makes imports costlier.
Impact on Domestic Users
For household consumers, the price of a 14.2-kg domestic LPG cylinder remains unchanged. The current subsidized rate for domestic cylinders is Rs 803 per cylinder in Delhi, Rs 802.50 in Mumbai, Rs 803 in Kolkata, and Rs 818.50 in Chennai. Non-subsidized domestic cylinders, which are purchased by those who have voluntarily given up the subsidy, also remain at the same level.
The government continues to provide a subsidy to eligible households under the Pradhan Mantri Ujjwala Yojana and other schemes. The subsidy amount is directly transferred to the bank accounts of beneficiaries.
Reasons Behind the Hike
The increase in commercial LPG prices is primarily driven by the surge in international LPG prices. India imports a significant portion of its LPG requirements, and any fluctuation in global prices directly affects domestic rates. Additionally, the depreciation of the Indian rupee against the US dollar has increased the cost of imports, leading to higher prices for commercial consumers.
Oil marketing companies revise LPG prices on a monthly basis, taking into account the average international price of LPG and the exchange rate. The last revision in commercial LPG prices was a reduction of Rs 19 per cylinder in the previous month.
Reactions from Industry
The hike in commercial LPG prices is expected to increase operational costs for businesses such as hotels, restaurants, and small-scale industries that rely heavily on LPG for cooking and other purposes. Industry bodies have expressed concern over the rising input costs, which may eventually lead to higher prices for consumers.
Restaurant owners in major cities have stated that the increase will add to their expenses, especially at a time when they are recovering from the pandemic. Some have indicated that they may need to adjust menu prices to offset the higher fuel costs.
On the other hand, domestic users have welcomed the unchanged rates for cooking gas, as it provides some relief amid rising inflation. The government has maintained that it is committed to ensuring affordable cooking fuel for households.
Outlook
Going forward, LPG prices will continue to be influenced by global oil and gas markets. Analysts expect that if international prices remain elevated, further hikes in commercial LPG rates cannot be ruled out. However, domestic prices are likely to remain stable as the government absorbs part of the cost through subsidies.
Consumers are advised to check the latest prices on the websites of oil marketing companies or through mobile apps to stay updated.
