India has revised commercial LPG prices, announcing a price hike effective from June 1. This sudden rise puts more pressure on industries already facing high input costs. Prices of 19 kg commercial cylinders have increased in metro cities, a trend that has been evident over the last few months.
In Delhi, the cost of each cylinder has increased by Rs. 42. There have been steeper increases in other cities, such as Kolkata.
Apart from commercial cylinders, there has been an increase in the price of 5-kg free-trade LPG cylinders. These LPG cylinders, not covered by the subsidy, have seen an increase of Rs. 11 per cylinder. This category usually serves small food vendors and eateries, among other small users. Even though the amount seems small, it will definitely affect their profit margins.
According to NDTV, ‘the price of a 19-kg commercial LPG cylinder in Delhi has increased by Rs. 42, taking the retail rate to Rs 3,113.50 from June 1. In Kolkata, the increase is even steeper at Rs 53.50, pushing the price to Rs. 3,255.50 per cylinder.’
On the other hand, the prices of domestic LPG cylinders have been left unchanged in this recent change. The price of the 14.2 kg cylinder will still be the same as before, which should be a consolation for residents battling rising commodity prices in the country.
The current rise in prices reflects the instability in the global energy market. India's dependence on foreign LPG supplies makes its prices highly sensitive to global indices. The cost of fuel has been driven high by geopolitical instability and other problems with fuel supply around the world. Oil marketing firms revise prices in accordance with such changes.
This change in prices will mainly affect restaurants, hotels, and other businesses that use commercial LPG. With rising fuel costs, businesses may be forced to incur more expenses. These additional expenses incurred by businesses may be passed on to consumers through higher service prices.
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