Commercial LPG cylinder prices have been sharply increased, with the 19 kg cylinder now costing Rs 3,071.50 in Delhi after a Rs 993 hike. The revision impacts businesses, but prices for the 14.2 kg domestic LPG cylinder remain unchanged.
Commercial LPG cylinder prices have been revised upwards steeply, effective Friday, adding to costs for businesses in the food and hospitality sectors, while domestic LPG prices remain unchanged for households.
Details of the Price Hike
According to sources, the price of a 19 kg commercial LPG cylinder has been increased by Rs 993, taking the cost in Delhi to Rs 3,071.50 from today. The 5 kg FTL (Free Trade LPG) cylinder has also been hiked by Rs 261 per cylinder with immediate effect.
Domestic LPG Prices Unchanged
There has been no change in the price of the 14.2 kg domestic LPG cylinder, which continues to be used by around 33 crore households across the country.
The revision applies only to commercial and bulk LPG categories, which together account for a small share of overall LPG consumption in India. Domestic LPG, which is subsidised and widely used for cooking, has been kept out of the latest price adjustment.
Reason for the Price Revision
The hike comes against the backdrop of volatile global crude oil prices, which have remained elevated in recent weeks due to geopolitical tensions in West Asia. Brent crude had touched $126 per barrel on Thursday, before falling to $113 per barrel on Friday.
Pricing Mechanism Explained
Since India imports a significant portion of its LPG requirements, domestic pricing of commercial and non-subsidised cylinders is linked to international benchmarks and is revised on a monthly basis. Oil marketing companies typically review LPG prices on the first day of every month, taking into account the average international price and the foreign exchange rate.
Impact on Businesses and Households
While domestic LPG rates have been held steady in recent months to shield households from inflation, commercial cylinder prices have seen frequent changes based on global trends.
The sharp increase in the 19 kg cylinder will directly impact restaurants, hotels, bakeries and other establishments that rely on commercial LPG for daily operations. Industry players often pass on part of the increased cost to consumers, which could reflect in food and dining prices in the coming weeks.
In contrast, the government has maintained a calibrated approach for domestic LPG to ensure affordability for households. The 14.2 kg cylinder price has remained unchanged for several months now, providing relief to consumers amid broader inflationary pressures.
The 5 kg Free Trade LPG (FTL) cylinder, mainly used by small establishments and for limited commercial purposes, is not subsidised and is priced closer to market rates, making it more sensitive to global fluctuations.
Broader Context of Fuel Pricing
Overall, around 80% of petroleum products, including domestic LPG, have seen no price change this month, while about 16% of products, primarily for industrial and commercial use, have seen an increase. The remaining 4% have seen a downward revision. (ANI)
(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)