Tuesday, 25 January 2022

Commercial LPG cylinder price hike by over ₹100

Commercial LPG cylinder price hike by over ₹100

State-owned oil marketing corporations Hindustan Petroleum, Bharat Petroleum, and Indian Oil have raised the price of the 19-kg commercial liquefied petroleum gas (LPG) cylinder by more than ₹100 with effect from December 1, even as they left household cooking gas prices unchanged.

Consequently, a 19-kg cylinder supplied by Indian Oil in Delhi will cost ₹2,101 as against ₹2,000.50; in Mumbai ₹2,051 (₹1,950); Kolkata ₹2,177 (₹2073.50); Chennai ₹2,234.50 (₹2,133) and Hyderabad ₹2,278 (₹2,175).

Wednesday’s revision follows the ₹266 increase, one of the steepest in many years, and the companies announced last month the refill price, which is meant for the use of commercial establishments, big and small, from tea stalls, restaurants to caterers. The nearly ₹370 increase in a short span is thus likely to prompt many users, especially smaller eateries, to consider revising rates on the menu.

Read More: Commercial LPG cooking gas prices hiked by Rs 266

Intense competition, a need to remain in business, and seasonal variations in the LPG prices – winter in the northern hemisphere push up global demand – may still hold many from resorting to a pass-through. As a relief measure, an association of hotels and restaurants was recently reported to have appealed to the Centre to reduce (GST) on commercial LPG from 18% to 5%.

Petroleum products prices in the country are linked to those of the costs of the respective products in the international market. However, the government modulates the effective price to consumers for subsidized domestic LPG and retail selling price of kerosene supplied under the public distribution system. Union Minister of State of Petroleum and Natural Gas Rameswar Teli had told the Rajya Sabha recently.

While increasing the commercial LPG price on Wednesday, the oil companies have kept the domestic LPG (14.2 kg cylinder) price unchanged. The move to raise the retail LPG price comes amid growing concerns over Omicron, the new variant of coronavirus, and the impact on the economy.

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