Commercial LPG Cylinder Prices Hike Takes Effect as of June 1 with No Change to Domestic Rates

Government-Imposed Hike in Commercial LPG Cylinder Prices Takes Effect Across Major Cities

The prices of commercial LPG cylinders have been increased across major cities, effective June 1, with oil marketing companies revising rates for 19-kg commercial cylinders while keeping domestic cooking gas prices unchanged. According to revised price notifications and an ANI report citing sources, the hike was implemented despite the government's efforts to maintain fuel security and adequate reserves in the wake of global energy market volatility.

In Delhi, the price of a 19-kg commercial LPG cylinder has been increased by Rs 42 to Rs 3,113.50. In Kolkata, the rate has gone up by Rs 53.50 to Rs 3,255.50. Additionally, oil marketing companies have also increased prices of 5-kg Free Trade LPG (FTL) cylinders by Rs 11. Following the revision, the retail price of a 5-kg FTL cylinder in Delhi now stands at Rs 821.50.

The revised rates have been implemented despite the government's efforts to maintain fuel security and adequate reserves. Speaking at an inter-ministerial briefing on Friday, Sujata Sharma, Joint Secretary at the Ministry of Petroleum and Natural Gas, said that the government had asked oil marketing companies to maintain a minimum 30-day LPG reserve. The government has also been working to strengthen fuel security and maintain adequate reserves amid concerns around global energy market volatility.

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The prices of domestic LPG cylinders used by households, however, have remained unchanged. The price of the standard 14.2-kg domestic LPG cylinder remains unchanged across cities. Commercial LPG cylinders are primarily used by hotels, restaurants, roadside eateries, and other businesses, while Free Trade LPG cylinders are generally used in segments not covered under the subsidised domestic LPG category.

The latest revision comes as part of a series of revisions in commercial LPG rates over recent months amid fluctuations in global energy prices. Domestic LPG prices, however, have remained largely stable after multiple rounds of revisions over the past two years. Commercial LPG cylinder prices are revised monthly by state-run oil marketing companies, including Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation, based on international fuel benchmarks, freight costs, and foreign exchange movements.