Commercial LPG price sees record jump of Rs 993, crosses Rs 3,000 mark

Commercial LPG Price Hike:  In a sharp escalation impacting businesses across the country, oil marketing companies have raised the price of commercial LPG cylinders by Rs 993 per unit, marking the steepest single increase on record. The revised rates came into effect on Friday, pushing the cost of a 19-kg commercial LPG cylinder in Delhi to an all-time high of Rs 3,071.5.

This is the third consecutive monthly hike in commercial LPG prices. Earlier, rates were increased by Rs 195.50 on April 1 and Rs 114.5 on March 1. With the latest revision, the cumulative increase over the past three months has surged to Rs 1,303 per cylinder, significantly raising operational costs for hotels, restaurants and other commercial establishments.

The price spike is largely attributed to rising global energy costs, triggered by ongoing geopolitical tensions in West Asia that have disrupted supply chains and tightened fuel availability. International crude oil prices have reportedly witnessed a steep rise of nearly 50 per cent in recent weeks, directly influencing domestic fuel pricing.

Despite the steep hike in commercial LPG, there has been no change in the price of domestic cooking gas. A 14.2-kg household LPG cylinder continues to retail at Rs 913 in Delhi. The last revision in domestic LPG prices was recorded on March 7, when rates were increased by Rs 60 per cylinder.

Public sector oil companies, including Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum, review and revise LPG and aviation turbine fuel (ATF) prices on the first day of every month. These revisions are aligned with international benchmark rates and fluctuations in the rupee-dollar exchange rate.

Meanwhile, petrol and diesel prices have remained stable for over a year following a Rs 2 per litre reduction announced in March last year. Currently, petrol is priced at Rs 94.72 per litre and diesel at Rs 87.62 per litre in Delhi.

Industry experts believe that if global crude prices remain elevated, further upward revisions in commercial fuel rates cannot be ruled out, potentially adding to inflationary pressures in the hospitality and service sectors.