LPG cylinder prices: State-backed oil marketing companies (OMCs) have once again raised the prices of commercial LPG cylinders in India. Effective October 1, 2024, the cost of 19 kg commercial LPG cylinders has increased by Rs 48.50 per cylinder. This marks the third price hike for commercial LPG cylinders in the past three months, bringing the total increase to Rs 94 during this period.
New Prices in Major Cities
The price revision has affected major metropolitan areas differently:
- In Delhi, a 19 kg commercial LPG cylinder now costs Rs 1,740, up from the previous price of Rs 1,691.50.
- Kolkata sees the highest price among the metros, with cylinders now priced at Rs 1,850.50.
- Mumbai residents will pay Rs 1,692.50 for a commercial cylinder.
- Chennai faces the steepest price, with cylinders now costing Rs 1,903.
These variations in prices across cities are likely due to differences in local taxes and transportation costs.
Impact on Businesses
The consistent rise in commercial LPG prices is expected to have a significant impact on businesses that rely heavily on LPG, such as restaurants, hotels, and catering services. These establishments may need to adjust their pricing strategies to offset the increased operational costs, potentially leading to higher prices for consumers.
Additional Changes in LPG Pricing
In addition to the price hike for 19 kg cylinders, the OMCs have also increased the cost of 5 kg free trade LPG cylinders by Rs 12. This change affects smaller businesses and households that use these compact cylinders for various purposes.
Reasons Behind the Price Hike
While the specific reasons for this price increase haven’t been mentioned, LPG prices are generally influenced by several factors, including:
1. International crude oil prices
2. Exchange rates between the Indian Rupee and the US Dollar
3. Global supply and demand for LPG
4. Domestic taxation policies
Potential Implications
The recurring price hikes in commercial LPG cylinders could have several implications:
1. Increased operational costs for businesses in the hospitality and food service industries
2. Potential rise in food prices at restaurants and catering services
3. Pressure on small businesses that rely on LPG for their operations
4. Possible shift towards alternative energy sources by some businesses to manage costs
Conclusion
As India continues to navigate the challenges of energy pricing, businesses and consumers alike will need to adapt to these changing costs. The government and OMCs may need to balance the need for price adjustments with the potential economic impact on various sectors. Monitoring future price trends and their effects on the market will be crucial for businesses and policymakers in the coming months.