Winning Bizness Desk
Consumers across India were greeted with an unpleasant surprise on the morning of September 1, 2024, as the price of commercial LPG gas cylinders saw a significant hike. This price increase comes just ahead of the festive season, adding pressure on hotels, restaurants, and businesses that rely heavily on these cylinders for their daily operations. According to the Indian Oil Corporation Limited (IOCL), the new prices for a 19 kg commercial LPG cylinder took effect from 6 AM on September 1. The price hikes vary across different cities:
- Delhi: The price of a 19 kg commercial cylinder increased by ₹39, bringing the new cost to ₹1,691.50, up from ₹1,652.50.
- Kolkata: Consumers in Kolkata will now pay ₹1,802.50, an increase of ₹38 from the previous price of ₹1,764.50.
- Mumbai: The price in Mumbai saw a smaller hike of ₹7, moving from ₹1,644 to ₹1,651.
- Chennai: The cost of a 19 kg cylinder rose by ₹38, reaching ₹1,855 from the earlier price of ₹1,817.
Background on Price Fluctuations
This latest increase follows a price hike in August for commercial gas cylinders, reversing the ₹30 reduction seen in July 2024. The continuous price adjustments have put a strain on businesses, especially as they prepare for the busy festive season. Despite these changes, the price of domestic LPG cylinders has remained stable, with no recent adjustments.
Impact on Consumers and Businesses
The hike in commercial LPG prices is likely to lead to higher costs for food and other services, particularly in the hospitality sector. The timing of this increase, just as the festive season begins, could further strain consumers' budgets. Despite the hikes in commercial cylinder prices, the central government has maintained stable prices for domestic LPG cylinders, providing some relief to household consumers. As of now, a 14 kg domestic LPG cylinder costs ₹803 in Delhi, ₹829 in Kolkata, ₹802.50 in Mumbai, and ₹818.50 in Chennai. Earlier this year, the government reduced domestic LPG prices by ₹100 during Holi, following a ₹200 cut in August 2023. Over the past year, domestic LPG prices have been reduced by ₹300, offering some respite to consumers amidst rising inflation. This latest increase in commercial LPG prices, however, underscores the volatility in the energy market and the challenges businesses face as they navigate fluctuating costs.
