LPG price surge hits businesses as fuel rates stay steady
India has sharply increased commercial LPG prices by an average of Rs 993, even as the government chose to keep domestic fuel rates steady amid global oil volatility triggered by tensions in the Strait of Hormuz.
The price of a 19-kg commercial LPG cylinder in New Delhi now stands at Rs 3,071.50, up from Rs 2,078.50. In Mumbai, prices have jumped from Rs 2,031 to Rs 3,024.
Third price hike since February
This marks the third increase in commercial LPG rates since the escalation of the Iran conflict on February 28.
Prices were first raised by Rs 144 in March, followed by another hike of nearly Rs 200 on April 1, indicating sustained pressure from global crude markets.
Restaurants and businesses likely to be hit
The steep hike is expected to impact restaurants, eateries, and small businesses that depend heavily on commercial LPG.
Industry experts say the increased cost burden could be passed on to consumers, making dining out and food delivery more expensive in the coming weeks.
Relief for households as domestic LPG unchanged
In contrast, domestic LPG prices have remained unchanged, offering some relief to households.
Petrol and diesel prices have also been kept stable, despite crude oil prices crossing $120 per barrel.
OMCs under financial stress
Oil marketing companies (OMCs) are reportedly absorbing heavy losses due to the price freeze.
With crude being purchased at elevated global rates but sold at unchanged retail prices, OMCs are estimated to be incurring significant daily losses.
Government balances inflation and growth risks
The government faces a difficult balancing act — raising fuel prices could ease pressure on OMCs but risk fuelling inflation and slowing economic growth.
Reports suggest that OMCs may seek compensation from the Centre to offset under-recoveries.
New LPG booking rules from May 1
From May 1, new booking rules will come into effect for domestic LPG cylinders.
Major suppliers — Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum — have revised booking intervals.
Customers in urban areas can now book cylinders only after 25 days (earlier 21 days), while in rural areas, the gap may extend up to 45 days.
Additionally, OTP-based Delivery Authentication Code (DAC) will now be mandatory for receiving LPG cylinders.
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