The price of a commercial liquefied petroleum gas (LPG) cylinder has been increased by Rs 993, taking it to a record high of Rs 3,071.50 in the national capital. The revised rates came into effect from Wednesday, according to a notification from oil marketing companies.
Details of the Price Hike
The new price for a 19-kg commercial LPG cylinder in Delhi now stands at Rs 3,071.50, up from the previous Rs 2,078.50. This marks an increase of 47.8% in a single revision. The hike is the steepest ever for commercial cylinders, which are used by restaurants, hotels, and other businesses.
Impact on Businesses
This sharp rise is expected to significantly increase operational costs for small and medium enterprises, particularly in the hospitality sector. Many businesses rely on commercial LPG for cooking and heating purposes, and the price surge may lead to higher menu prices or reduced profit margins.
Comparison with Domestic LPG
In contrast, the price of domestic LPG cylinders remains unchanged. A 14.2-kg domestic cylinder currently costs Rs 1,053 in Delhi, with the government providing a subsidy of Rs 200 per cylinder under the Ujjwala scheme. The government has not yet announced any relief for commercial users.
Reasons Behind the Hike
Oil marketing companies revise LPG prices on a monthly basis, linked to international benchmark rates. The recent increase is attributed to a rise in global crude oil prices and higher demand. Industry experts suggest that further hikes may be on the horizon if global prices remain elevated.
Regional Variations
The prices vary across states due to differences in local taxes and freight charges. For instance, in Mumbai, the commercial cylinder now costs Rs 3,124, while in Kolkata it is Rs 3,185 and in Chennai Rs 3,233. Consumers are advised to check the latest rates from their respective distributors.
The government has not issued any statement regarding potential intervention to ease the burden on businesses. Stakeholders are hoping for a reduction in taxes or a subsidy to mitigate the impact of this record price hike.
