Significant Hike in Commercial LPG Prices Amid Global Oil Crisis
Impact of Price Increase on Commercial LPG
As the new financial year begins, consumers have received some relief in domestic cooking gas prices. However, the hospitality sector, including hotels and restaurants, along with small businesses, are facing a new wave of inflation. Oil companies have announced a substantial increase in the prices of the 19 kg commercial LPG cylinders starting today.
New Prices Across Major Cities
In Delhi, the price of a 19 kg commercial LPG cylinder has surged by ₹195.50, now costing ₹2,078.50. Kolkata has seen an increase of ₹218, while Mumbai and Chennai have experienced hikes of approximately ₹195 and ₹203, respectively.
City-wise Price Breakdown
City-wise New Prices (19 kg Commercial LPG Cylinder)
- Delhi — ₹2,078.50 (previously ₹1,883)
- Mumbai — ₹2,031 (previously around ₹1,836)
- Kolkata — ₹2,208.50 (previously around ₹1,990)
- Chennai — ₹2,246.50
- Bengaluru — ₹2,161
- Noida/Gurugram — ₹2,078.50 to ₹2,096.50
No Change in Domestic LPG Prices
The price of the 14.2 kg domestic LPG cylinder remains unchanged, still priced at ₹913 in Delhi, following a previous increase of ₹60 on March 7.
Reasons Behind the Price Surge
This price hike is attributed to the recent spike in global crude oil prices, primarily due to the ongoing conflict in West Asia (Iran-US). Tensions in the Strait of Hormuz have disrupted oil supplies, leading to increased costs for commercial gas. Oil companies (IOCL, BPCL, HPCL) have made this decision as part of their monthly review.
Who Will Be Affected?
Implications of the Price Increase
- Hotels, restaurants, dhabas, bakeries, and catering businesses will face increased operational costs.
- There is a likelihood of rising prices for food and beverages.
- Small industries and workshops will also be impacted.
- While domestic consumers currently enjoy relief, prolonged tensions could eventually affect domestic prices as well.
Supply Assurance from Oil Companies
Oil companies have assured that the supply of domestic LPG remains stable and there is no shortage. However, commercial users may need to bear the additional financial burden.
How to Check Your Prices?
Consumers can check the current rates by visiting the official websites or apps of Indian Oil, Bharat Petroleum, or Hindustan Petroleum, selecting their city and connection type.
Future Outlook
This price increase is a direct consequence of the global oil crisis linked to the Iran conflict, which has already affected petrol and diesel prices, and now commercial gas. While domestic consumers may feel some relief, businesses are grappling with this sudden financial strain.
It remains to be seen how the situation evolves in the coming months. If global oil prices stabilize, there may be some relief; otherwise, further increases could be on the horizon.