Commercial Cylinders Costlier By Rs 62 Overnight.
The price of commercial LPG gas cylinders has increased on Friday, which would further affect businesses that rely on them. As of now, a 19 kg commercial cylinder costs Rs 62 more, making the price Rs 1,802 in Delhi.
The price of 5 kg Free Trade LPG cylinders has also gone up by Rs 15. However, the rate of 14.2 kg cylinders remains unchanged.
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Now that the new prices are in effect across the country, businesses that rely on LPG are feeling the pinch that the price hike will directly affect restaurants, hotels, and other establishments using LPG for daily operations. There is also a possibility of increasing the price of the food menu, which will potentially lead to higher prices for consumers. This adds financial pressure on both businesses and customers.
In recent times, LPG prices have fluctuated. Last October, the price of commercial LPG cylinders increased by Rs 48.50.
The 5 kg Free Trade LPG cylinders also saw a Rs 12 price hike. On September 1, the rate of 19 kg commercial cylinders rose by Rs 39.
Although commercial LPG prices are rising, domestic cylinder prices remain stable. This is a relief for households but stresses the different challenges faced by consumers and businesses. But it is expected that the domestic cylinder prices will rise soon.
A hike in LPG prices across India, with 19 kg cylinders up by ₹62 & 5 kg cylinders hiked by ₹15 is certainly a dampener to the festive mood. I am sure, domestic cylinder prices will rise soon. Just a day after “Narkasuras” were burnt, the “Demon of Inflation” has risen.… pic.twitter.com/B4mTKbThwM
— Prabhav Naik (@Prabhav6222) November 1, 2024
Now, let’s look at city-wise commercial LPG prices:
- Delhi: Rs 1,802
- Mumbai: Rs 1,754.50
- Kolkata: Rs 1,911.5
- Chennai: Rs 1,964.50
In India, oil marketing companies (OMCs) play a crucial role in determining the prices of Liquefied Petroleum Gas (LPG).
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These companies, including Indian Oil, Bharat Petroleum, and Hindustan Petroleum, adjust LPG prices based on global crude oil fluctuations, exchange rates, and government policies.
While the government regulates LPG prices for domestic use, commercial LPG rates vary with market conditions. Periodic revisions are made to reflect international pricing trends and manage subsidies.
The control of LPG prices by OMCs, according to the industry, aims to balance affordability for consumers while maintaining financial stability for the companies amidst volatile global markets.
