Commercial LPG cylinder prices have been increased across major cities effective June 1, with oil marketing companies raising rates for 19-kilogram commercial cylinders while leaving domestic LPG prices unchanged. In Delhi, the price of a commercial cylinder has risen by Rs 42, while Kolkata has witnessed an increase of Rs 53.50. The revision is expected to impact hotels, restaurants, eateries, and other businesses that depend on LPG for their operations.
Impact on Businesses
The price hike for commercial LPG cylinders will directly affect the operational costs of small and large businesses alike. Hotels and restaurants, which rely heavily on LPG for cooking, will face increased expenses. Eateries and food stalls are also likely to feel the pinch, potentially leading to higher menu prices for consumers. The increase varies by city, with Kolkata seeing the steepest rise among major metros.
Domestic LPG Prices Unchanged
In contrast, domestic 14.2-kilogram LPG cylinder prices remain unchanged across the country. This move provides relief to households, which have been grappling with inflationary pressures. The government has chosen not to pass on the global energy market volatility to domestic consumers, ensuring that cooking gas remains affordable for families.
Government Directive on LPG Reserve
Meanwhile, the government has directed oil marketing companies to maintain a minimum 30-day LPG reserve as part of efforts to strengthen fuel security amid volatility in global energy markets. This directive aims to ensure uninterrupted supply of LPG, especially during periods of geopolitical tensions or supply disruptions. The move underscores the government's commitment to energy security and its proactive approach to managing fuel supplies.
The decision to maintain a strategic reserve comes at a time when global energy prices have been fluctuating due to geopolitical factors. By mandating a 30-day buffer, the government seeks to shield the domestic market from sudden price shocks and supply constraints. Oil marketing companies have been instructed to comply with the directive immediately.
