Commercial Cylinder Price Jump
As of April 1st, consumers purchasing 19 kg commercial LPG cylinders are facing increased costs. In Delhi, the price has risen by a notable ₹195.50, while
Kolkata has seen an even larger increase of ₹218. This adjustment marks a significant change for businesses relying on these cylinders. It's important to note that this price hike specifically affects commercial cylinders; rates for domestic household cooking gas remain unchanged during this period. The updated prices for commercial cylinders in major metros on April 1st show Delhi at ₹2078.50, Kolkata at ₹2208.00, Mumbai at ₹2031.00, and Chennai at ₹2246.50. These figures represent a substantial jump from the previous day's rates, for example, Delhi's commercial cylinder was priced at ₹1,884.50 on March 31st, Kolkata was at ₹1,988.50, and Mumbai was at ₹1,836.00.
FTL Cylinder & Domestic Rates
Beyond the 19 kg commercial cylinders, smaller 5kg Free Trade LPG (FTL) cylinders have also experienced a price increase. Effective from today, the cost of these FTL cylinders has gone up by ₹51. In contrast to the commercial segment, domestic cooking gas rates, which are used by households for everyday cooking, have remained stable. For instance, the domestic 14.2 kg LPG cylinder in Delhi is priced at ₹913.00, in Kolkata at ₹939.00, and in Mumbai at ₹912.50, consistent with their rates on March 31st. This distinction highlights that the current price revisions are primarily targeting commercial and smaller FTL cylinder users.
Factors Behind the Hike
The recent surge in LPG prices, particularly for commercial cylinders, is largely attributed to the escalating geopolitical tensions in West Asia. This ongoing conflict has led to considerable volatility in global oil markets, causing supply chain disruptions and creating a sense of shortage. This energy crisis's impact is now being reflected in the prices of Liquefied Petroleum Gas. Previously, in March, domestic and commercial LPG cylinders already saw price hikes of ₹60 and ₹144.5 respectively. The current price adjustment on April 1st is directly linked to the widening conflict involving Iran and the US-Israel, which has pushed global oil prices up by nearly 50% since late February due to concerns over energy supply routes. Oil Marketing Companies, including Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum, are mandated to revise ATF and LPG prices on the first day of each month, basing their calculations on international market benchmarks and currency exchange rates.
LPG Supply & Delivery Updates
In parallel with the price changes, the government has also provided updates regarding LPG supply. On March 31st, it was stated that the supply of Commercial LPG had been restored by 20% to consumers. Furthermore, a proposal was made to allocate an additional 10% of Commercial LPG to States/UTs, contingent on ease-of-doing-business reforms aimed at expanding PNG infrastructure. The Ministry of Petroleum and Natural Gas reported that since March 23rd, over 3.2 Lakh 5 Kg FTL cylinders have been distributed to migrant laborers nationwide, with more than 63,000 sold just yesterday to this demographic. Most states and Union Territories have issued orders for the allocation of non-domestic LPG in line with government guidelines, with commercial entities uplifting a total of 47928 MT since March 14th. The government affirms that no distributor shortages have been reported, acknowledging the impact of the global geopolitical situation on LPG availability. Online LPG cylinder bookings have seen an increase, reaching 92% industry-wide on March 30th. PSU Oil Marketing Companies have been delivering over 50 Lakh domestic LPG cylinders daily since March 1st, and Delivery Authentication Code (DAC)-based deliveries have risen significantly from 53% in February to 83% by March 30th, a measure to prevent diversion at the distributor level.
