Centre raises commercial LPG price by Rs 993, domestic LPG costs unchanged
Supply disruptions in West Asia cited as key reason; Delhi rate crosses Rs 3,000
State-owned oil marketing companies (OMCs) have significantly raised the cost of 19-kg Commercial Liquefied Petroleum Gas (LPG) cylinders by Rs 993 with effect from Friday viz May 1, while the price for domestic LPG have remained unchanged.
The main reason behind the rise in the commercial LPG price is due to the interruptions in energy supply chains spurred by the West Asia war and disruptions in the Strait of Hormuz. As a result, the global oil prices have increased by almost 50 percent in recent weeks.
With this, the price hike will majorly hit hotels, restaurants, cloud kitchens, bakeries, dhabas, and other commercial establishments that use bulk commercial LPG for cooking. Many companies may experience an increase in operating expenses, which they might choose to pass on to consumers in the form of menu price adjustments.
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OMCs, on the first day of each month, revise LPG and Aviation Turbine Fuel (ATF) pricing to reflect global benchmarks and exchange rates.
With the latest hike, the price of commercial LPG in Delhi has now increased from Rs 2,078.50 to Rs 3,071.50, while the domestic 14.2-kg LPG cylinder used in home kitchens still costs Rs 913.
Earlier, the prices of commercial LPG cylinders were increased by Rs 195.50 on April 1 and Rs 114.50 on March 1. The latest price rise has been the highest so far. While the domestic LPG rates were last hiked by Rs 60 per 14.2-kg cylinder on March 7.
According to the statement issued by Indian Oil Corporation Limited (IOCL), the retail prices of petrol and diesel remain unchanged for general public, which constitutes around 90 percent of the total petrol, diesel consumption in the country.
Furthermore, there has been no change in prices of domestic LPG (14.2 kg) for 33 crore domestic LPG consumers. No change in ATF prices for domestic airlines (scheduled operations) Also, there has been no change in prices of PDS kerosene.
Overall, approximately 80 percent of petroleum products have witnessed no change in prices, thus ensuring stability for the majority of consumers,” as per the statement.
