LPG Cylinder Price Hike: A Fresh Jolt to Consumers

The rising cost of living has taken another hit as oil marketing companies (OMCs) announce yet another hike in the price of commercial LPG cylinders. Effective today, the price of a 19 kg commercial LPG cylinder has increased by ₹16.50, causing a ripple effect that is likely to impact businesses and consumers alike.

New Prices Across Major Cities

With the latest revision, the cost of a 19 kg commercial LPG cylinder in Hyderabad has gone up from ₹2028 to ₹2044.50. The updated prices for other cities are as follows:

Delhi: ₹1818.50

Mumbai: ₹1771

Kolkata: ₹1928

Chennai: ₹1981

In addition, the price of a 5 kg free trade LPG cylinder has been increased by ₹4.

Relief for Domestic Users

While commercial cylinder prices see a consistent upward trend, the cost of the 14.2 kg domestic LPG cylinder, primarily used in households, remains unchanged. This decision offers a slight reprieve for families already grappling with inflationary pressures.

However, the relief may be short-lived as the indirect impact of commercial price hikes trickles down to consumers. For instance, restaurants and food outlets that rely on these cylinders may pass on the increased costs to customers by raising menu prices.

A Pattern of Rising Costs

This is not the first hike in recent months. In October 2024, OMCs increased the price of a 19 kg commercial cylinder by ₹48.50. This was followed by a ₹62 hike in November 2024. Even September 2024 saw price adjustments, reflecting a steady upward trajectory in commercial gas prices.

In total, the cumulative increases over the last three months have made it harder for small businesses and commercial establishments to manage operational costs.

Monthly Price Revisions

OMCs revise LPG cylinder prices monthly, based on fluctuations in international market conditions. These revisions can result in increases, decreases, or no changes at all. Unfortunately for businesses, recent trends have predominantly leaned towards price hikes, adding to their financial strain.

Impact on Consumers and Businesses

The latest hike is expected to disproportionately affect restaurants, bakeries, caterers, and other commercial establishments that depend on LPG for daily operations. The rising costs may force many to either absorb the impact, reducing profit margins, or transfer it to their customers, leading to higher prices for food and other services.

A Call for Relief

As businesses and consumers face yet another round of price hikes, calls for regulatory intervention to stabilize LPG prices are growing. With inflation affecting multiple sectors, it is imperative to strike a balance between global market realities and the financial well-being of domestic users and small businesses.

While domestic cylinder prices remain stable for now, the relentless rise in commercial LPG costs underscores the need for sustainable pricing mechanisms to support both businesses and households in these challenging times.

Stay tuned for further updates as we track the impact of these price changes on the economy.