Jaipur: Commercial LPG prices have surged by Rs 42, with the 19 kg cylinder now costing Rs 3,141 in Jaipur. Similarly, the 5 kg Free Trade LPG (FTL) cylinder has increased by Rs 11, now priced at Rs 825.
Price Disparity Between Domestic and Commercial LPG
Compared to domestic gas prices of Rs 65 per kg, the commercial cylinder cost is nearly three times higher, at Rs 165 per kg. This significant price gap has led to varied responses from different consumer groups.
Impact on Small Vendors and Hotels
Small roadside food vendors using FTL cylinders are passing on the increased costs to consumers. In contrast, large consumers of 19 kg cylinders, such as hotels, are absorbing the cost. The tourist inflow has thinned out due to the summer season and higher travel costs, making it difficult for hotels to pass on the price hike.
Allegations Against Oil Marketing Companies
LPG distributors have alleged that Oil Marketing Companies (OMCs) are resorting to forced billing and sale of 19 kg and 5 kg FTL commercial cylinders, despite a shortage in domestic LPG supply. Dealers claim that consumers in rural areas face a waiting period of 7 to 10 days for domestic cylinder delivery. With a 45-day gap for booking the next refill, the total wait can extend up to 55 days. For urban consumers, the waiting period remains between 5 to 7 days.
Distributors' Concerns
“Instead of meeting the rural demand and reducing the waiting period, the OMCs are pushing the sale of commercial cylinders as it fetches more profits for them,” said a senior representative of the Rajasthan LPG Distributors Association. They have written to state-level officials of OMCs, alleging that field officers are manipulating distributors’ orders and forcing supplies of commercial cylinders even when distributors already have adequate stock.
Dispute Over Suraksha Rubber Tubes
An ongoing dispute between LPG distributors and OMCs has intensified over the alleged forced sale of Suraksha Rubber Tubes, even as distributors report holding excess inventories of the product. Distributors claim they are being compelled to procure the product at around Rs 130 per unit and sell it at Rs 190, while similar products are available in the open market for as low as Rs 85.
Dealers question the companies that are aggressively pushing commercial LPG sales instead of addressing domestic demand. The situation highlights the tension between profitability and consumer needs in the LPG sector.
