The price of a 14.2-kg domestic LPG cylinder was hiked due to geopolitical disruptions to fuel supply. This increase has now been officially confirmed, with oil marketing companies raising the prices of non-subsidised domestic LPG gas cylinders by 60 rupees across metropolitan cities in India.
In Delhi, the price for a 14.2 kg gas cylinder has increased from 853 rupees to 913 rupees. Similarly, new rates for LPG cylinders have been set at 912.50 rupees in Mumbai, 939 rupees in Kolkata, and 928.50 rupees in Chennai. Additionally, the rates of commercial LPG gas cylinders have seen a significant increase of 115 rupees.
Current Situation
The rising prices have prompted the Indian government to take action, increasing the LPG booking period from 21 days to 25 days in an effort to curb hoarding. This move comes amid an acute shortage of commercial LPG cylinders that is disrupting the hospitality sector in major cities like Mumbai, Bengaluru, and Chennai.
According to the AHAR – Indian Hotels and Restaurants Association, “Despite being a basic operational requirement for restaurants and hotels, commercial cylinders are becoming increasingly difficult to obtain through proper channels.” This shortage has forced at least 20 percent of hotels and restaurants in Mumbai to shut down temporarily.
Government Response
In response to the ongoing crisis, the Government of India has invoked the Essential Commodities Act to ensure the supply of natural gas. Officials have stated that the supply of natural gas must be treated as a priority allocation and shall be maintained subject to operational availability to one hundred percent of their average past six-month average gas consumption.
Details remain unconfirmed regarding the exact impact of ongoing geopolitical conflicts on future gas cylinder prices. Observers are closely monitoring the situation as it continues to evolve, with potential implications for both consumers and businesses across the country.
