Oil marketing companies (OMCs) reduced the price of 19-kg commercial LPG cylinders by Rs 183.5 as of Wednesday, providing much-needed respite to hotels, restaurants, caterers and other sectors following months of sharp price increases spurred by the volatility of the global energy market due to West Asia crisis.
However, the cost of domestic cooking gas cylinders hasn’t changed, providing not much relief to consumers.
As part of the monthly fuel price revisions enacted by OMCs, the revised rates came into effect on Tuesday. Commercial LPG cylinder prices have decreased for the first time this year, reversing a string of hikes that had raised operational expenses for companies that relied on the fuel.
The earlier rises were primarily linked to higher international LPG costs due to supply issues driven by geopolitical tensions in West Asia, especially the crisis with Iran.
The cost of commercial LPG decreases
The price of a 19-kg commercial LPG cylinder in Delhi has dropped by Rs 183.5, from Rs 3,113.5 in June to Rs 2,930.
Not every city witnessed the same decrease, the prices for commercial cylinders decreased by Rs 183.50 in Delhi and Lucknow, Rs 174 in Kolkata, Rs 181.5 in Chandigarh, and Rs 173 in Patna. After the revision, a 19-kg commercial cylinder now costs Rs 3,081.50 in Kolkata, Rs 2,954.5 in Chandigarh, and Rs 3,227 in Patna. A 19-kg commercial cylinder now costs Rs 3,081.5 in Kolkata, Rs 2,954.5 in Chandigarh, and Rs 3,227 in Patna after the revision.
Restaurants, hotels, bakeries, cloud kitchens, roadside eateries, caterers and other industries that use several commercial LPG cylinders each month are expected to gain advantages from the price reduction. The hospitality and food services industries, which have recently seen an increase in operating costs, may benefit from lower fuel prices.
No respite for domestic consumers
LPG customers will continue to pay the same prices as last month, however, commercial consumers have benefited from a substantial price reduction. The standard 14.2-kg domestic LPG cylinder is still priced at Rs 942 in Delhi, Rs 968 in Kolkata, Rs 941.5 in Mumbai, and Rs 957.5 in Chennai.
Domestic LPG prices are revised on the first day of each month, but they are less frequent than those for commercial cylinders as they are impacted by both government policy and foreign fuel costs.
