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Commercial LPG Prices Surge Again, Impacting Businesses Nationwide

The recent hike in commercial LPG prices is adding financial pressure on restaurants, hotels, and small businesses across India. With the price of a 19-kg cylinder now reaching Rs 3,113.50 in Delhi, the increase reflects a troubling trend that has seen prices rise by over Rs 1,400 since January. This surge comes amid rising fuel and transportation costs, further straining operational budgets. As businesses grapple with these challenges, the impact of global energy market volatility and supply chain disruptions continues to influence fuel pricing. Read on to learn more about the implications of these price hikes.
 

Significant Increase in Commercial LPG Prices

Image used for representational purpose only. (Photo:PTI)

New Delhi, June 1: The cost of commercial LPG has seen another increase, further straining the finances of restaurants, hotels, caterers, and small enterprises that heavily depend on cooking gas.

As per the latest adjustments effective from Monday, the price for a 19-kg commercial LPG cylinder in Delhi has risen by Rs 42, bringing the retail price to Rs 3,113.50. In Kolkata, the hike is more pronounced at Rs 53.50, raising the cost to Rs 3,255.50.

This price increase occurs amidst already rising fuel and transportation costs faced by businesses. Additionally, oil marketing firms have raised the price of 5-kg Free Trade LPG (FTL) cylinders by Rs 11, making the new price in Delhi Rs 821.50. Fortunately, there has been no adjustment in the prices of domestic LPG cylinders, providing some relief to household consumers.

The recent hike continues a troubling trend in commercial LPG pricing that has been evident since the start of the year. In January, the cost of a 19-kg commercial LPG cylinder in Delhi was Rs 1,691.50. Following a series of monthly price adjustments, it has now escalated to Rs 3,113.50, reflecting an increase of over Rs 1,400 in just five months.

These price hikes have occurred in successive increments. In February, commercial LPG prices rose by Rs 49, followed by a Rs 115 increase in March. The most significant jump occurred in April, with prices soaring by Rs 993 per cylinder. After remaining high in May, the rates have been adjusted upward once more in June.

The repercussions of rising LPG prices are being felt in major urban areas. Currently, a 19-kg commercial cylinder costs Rs 3,024.50 in Mumbai, Rs 3,232 in Chennai, Rs 3,294 in Hyderabad, and Rs 3,322 in Patna, making commercial fuel considerably more expensive in several cities.

This LPG price increase follows recent hikes in other fuel categories. In Delhi and nearby regions, Compressed Natural Gas (CNG) prices have risen by Rs 2 per kg, now priced at Rs 83.09 per kg. Since May 15, CNG prices have cumulatively increased by Rs 6 per kg through four separate adjustments.

Moreover, petrol and diesel prices have also seen upward movements in recent weeks. Petrol prices have surged by Rs 7.35 per litre, while diesel has increased by Rs 7.53 per litre across multiple rounds. For businesses reliant on both transportation and commercial cooking fuel, the combined effect is likely to escalate operational costs further.

Industry analysts attribute the ongoing rise in commercial LPG prices to persistent fluctuations in global energy markets and disruptions in international supply chains, which continue to affect fuel pricing across various sectors.