New Delhi – With the start of November 2024, oil companies have implemented a significant price increase for commercial LPG cylinders, marking yet another adjustment in the fluctuating market. Effective from November 2024, the price of the 19 kg commercial LPG cylinder has surged by Rs 62, raising new costs across major Indian cities. Fortunately, consumers of domestic LPG cylinders can breathe a sigh of relief as their prices remain unchanged.
Updated Prices of LPG Cylinders Across Major Cities
The recent hike in commercial LPG cylinder prices has sparked discussions among consumers and businesses alike. Below are the revised prices for the 19 kg cylinder across key metropolitan areas:
- Delhi: The cost has risen from Rs 1740 to Rs 1802.
- Kolkata: The new price is Rs 1911.50, up from Rs 1850.50.
- Mumbai: Customers will now pay Rs 1754, an increase from Rs 1692.50.
- Chennai: The price has climbed from Rs 1903 to Rs 1964.
This upward trend in pricing underscores the volatile nature of LPG costs, primarily influenced by global market dynamics and local inflation rates.
Domestic Cylinder Prices Remain Steady
In a somewhat relieving development for everyday consumers, the prices of 14.2 kg domestic LPG cylinders have remained stable, which is a welcome respite for families who rely on these cylinders for cooking and other household needs. Here are the current prices for domestic LPG cylinders in major cities:
- Delhi: ₹803
- Kolkata: ₹829
- Mumbai: ₹802.50
- Chennai: ₹818.50
Additionally, beneficiaries of the Ujjwala Yojana, a government initiative aimed at providing affordable cooking fuel to low-income households, will find the price of the domestic cylinder in Delhi set at ₹603. This support mechanism continues to play a critical role in alleviating the burden on economically disadvantaged families.
Understanding the Pricing Mechanism
The pricing of LPG cylinders is determined by oil companies on the first day of each month, reflecting their operational costs and the broader economic landscape, including inflation rates and global crude oil prices. This month’s adjustments, however, have only affected commercial cylinder prices.
Historically, the government has intervened to adjust domestic cylinder prices when necessary. For instance, in August 2023, the government slashed domestic gas cylinder prices by approximately ₹100, providing temporary relief to consumers. The sustained stability in domestic cylinder prices over the past several months suggests a careful approach by authorities to balance consumer affordability against the backdrop of fluctuating market conditions.
Impact of Price Hikes on Consumers and Businesses
The rise in commercial LPG cylinder prices could have profound implications for various sectors. Restaurants, catering services, and other businesses reliant on LPG for cooking and heating may be forced to adjust their pricing strategies, potentially passing the increased costs onto consumers. This could lead to a cascading effect on overall food prices, impacting dining out and food delivery services across the nation.
Consumers in the hospitality industry might see their expenses increase, prompting a broader examination of how these costs can be mitigated. Furthermore, industries that utilize LPG in manufacturing processes may also feel the pinch, leading to a reevaluation of budgets and operational costs.
