In a significant price revision, the cost of a 19 kg commercial LPG cylinder was increased by ₹993 nationwide on Friday, May 1. Following the hike, the price of a commercial cylinder in Delhi now stands at ₹3,071.50.
Despite the sharp increase in commercial cylinder rates, domestic LPG prices remain unchanged, offering relief to nearly 33 crore household consumers. Oil Marketing Companies (OMCs), including Indian Oil Corporation, confirmed that there is no price revision for 14.2 kg domestic cylinders.
Impact of Geopolitical Tensions
The price adjustment comes amid growing concerns over India's energy supply, as rising geopolitical tensions in West Asia continue to impact global oil routes. Officials noted that while certain petroleum products have seen price changes, around 80% remain stable, ensuring minimal impact on the majority of consumers.
Alongside commercial LPG, bulk diesel, and aviation turbine fuel (ATF) for international airline operations, we have also witnessed upward revisions. However, ATF prices for domestic airlines remain unchanged, maintaining stability in the aviation sector.
Interestingly, about 4% of petroleum products have seen a price reduction, reflecting fluctuations in global markets. Authorities stated that these revisions are part of a calibrated and balanced approach adopted by OMCs under the guidance of the Ministry of Petroleum and Natural Gas, aimed at aligning with international price trends while protecting domestic users.
Effect on Food Service Sector
However, the hike in commercial LPG prices has raised concerns among restaurant owners and small food businesses. Previous price increases had already forced many eateries to cut down menu items, raise prices, or switch to alternative fuels like firewood. Several small roadside stalls were even compelled to shut down.
With the latest hike, industry stakeholders fear renewed pressure on the food service sector, which may once again affect pricing and operations for businesses and consumers alike.
