India
oi-Madhuri Adnal
The festive season has begun, but businesses that depend on commercial cooking gas have been handed a higher bill. Prices of 19 kg commercial LPG cylinders have gone up from October 1, with the increase crossing Rs 60 in several major cities. The hike is likely to add to the daily running costs of restaurants, hotels, roadside eateries, bakeries and other businesses that use commercial LPG.
For households, however, there is some relief. The price of the 14.2 kg domestic LPG cylinder has remained unchanged, meaning families using LPG for cooking will not have to pay more for their cylinders this month.
Commercial LPG cylinder prices increased by over Rs 60 from October 1 in major cities including Delhi, Mumbai, and Chennai, raising costs for businesses, while domestic LPG cylinder prices remained unchanged for households.
Delhi commercial LPG cylinder now costs Rs 2,810
In Delhi, the price of a 19 kg commercial LPG cylinder has increased from Rs 2,747.50 in September to Rs 2,810 from October 1. That is an increase of Rs 62.50 per cylinder.
The latest increase comes soon after a Rs 9.50 hike in Delhi in September, putting further pressure on businesses that use commercial LPG regularly.
For a small restaurant or roadside eatery that goes through several cylinders in a month, even a rise of Rs 60 or more per cylinder can add up quickly.
Mumbai, Chennai also see sharp increase
Mumbai has also seen a similar increase. The price of a 19 kg commercial cylinder has gone up from Rs 2,701 to Rs 2,764, making it Rs 63 more expensive.
In Chennai, the price has increased from Rs 2,916.50 to Rs 2,983, a rise of Rs 66.50.
Patna has seen the biggest increase among the major cities listed. The price of a 19 kg commercial cylinder has jumped by Rs 71.50, from Rs 3,029 to Rs 3,100.50.
The new commercial LPG price in Ahmedabad is Rs 2,831.50. In Kanyakumari, it is now Rs 3,046, while the price in Tawang, Arunachal Pradesh, has reached Rs 3,073.50.
No change in domestic LPG prices
While businesses will have to absorb the higher commercial LPG cost, households have been spared a price increase for now.
A 14.2 kg domestic LPG cylinder continues to cost Rs 942 in Delhi and Rs 941.50 in Mumbai. In Chennai, the price remains Rs 957.50.
Consumers in Patna will continue to pay Rs 1,031.50, while the domestic cylinder price in Lucknow remains Rs 979.50.
So, for families using domestic LPG, there is no immediate change in the monthly cooking gas bill.
Why do commercial LPG prices change?
Commercial LPG prices are closely linked to international LPG prices and changes in the value of the rupee against other currencies. Oil marketing companies review commercial cylinder prices based on international benchmark rates and other market factors.
Domestic LPG works somewhat differently. Since cooking gas is a household necessity, the government can step in to keep domestic cylinder prices stable when needed.
That is why a rise in commercial LPG prices does not necessarily mean that households will see the same increase in the price of their cooking gas cylinder.
