Media365
India has reduced the price of 19-kg commercial LPG cylinders by Rs 183.50 from July 1, offering long-awaited relief to hotels, restaurants, caterers and other businesses after months of steep price increases driven by global energy market volatility. However, there has been no change in the price of domestic cooking gas cylinders, leaving household consumers without any respite.
The revised rates came into effect on Tuesday as part of the monthly fuel price revision undertaken by state-run oil marketing companies (OMCs).
The reduction marks the first cut in commercial LPG cylinder prices this year, reversing a series of increases that had pushed up operating costs for businesses dependent on the fuel. The earlier hikes were largely attributed to higher international LPG prices amid supply concerns arising from geopolitical tensions in West Asia, including the conflict involving Iran.
Commercial LPG becomes cheaper
In Delhi, the price of a 19-kg commercial LPG cylinder has been reduced to Rs 2,930 from Rs 3,113.50 in June, a decline of Rs 183.50.
The reduction was not uniform across cities. Commercial cylinder prices fell by Rs 183.50 in Delhi and Lucknow, Rs 174 in Kolkata, Rs 181.50 in Chandigarh and Rs 173 in Patna.
Following the revision, a 19-kg commercial cylinder now costs Rs 3,081.50 in Kolkata, Rs 2,954.50 in Chandigarh and Rs 3,227 in Patna.
The price cut is expected to ease input costs for restaurants, hotels, bakeries, cloud kitchens, roadside eateries, caterers and other businesses that consume multiple commercial LPG cylinders every month. Lower fuel costs could help improve margins for the hospitality and food services sectors, which have faced rising operating expenses in recent months.
No relief for households
While commercial consumers have received a significant price cut, domestic LPG users will continue to pay the same rates as last month.
The price of the standard 14.2-kg domestic LPG cylinder remains unchanged at Rs 942 in Delhi, Rs 968 in Kolkata, Rs 941.50 in Mumbai and Rs 957.50 in Chennai.
Domestic LPG prices are revised on the first day of every month, but changes are influenced not only by international fuel prices but also by government policy, making revisions less frequent than those for commercial cylinders.
Commercial LPG prices had climbed sharply over the past few months as global energy markets were disrupted by geopolitical tensions in West Asia. Concerns over supplies and higher import costs had prompted oil companies to raise prices repeatedly, with one of the steepest increases recorded in May.
The latest reduction suggests that pressure on international LPG markets has eased following a moderation in global oil and gas prices. Even after Tuesday’s cut, however, commercial LPG prices remain above levels seen before this year’s surge.
The latest revision comes as fuel retailers have also begun lowering prices of some transport fuels in response to softer international crude oil prices. Private retailer Nayara Energy recently reduced petrol prices by Rs 5 per litre and diesel prices by Rs 3 per litre, following a decline in global oil prices.
