Consumers have been hit by a price hike just ahead of the festive season, with commercial LPG cylinder rates increasing from today (October 1). The price of 19-kg commercial cylinders has risen by more than Rs 60 in several cities, potentially increasing operating costs for hotels, restaurants, roadside eateries and other businesses that rely heavily on commercial gas.ย However, there has been no change in the prices of 14.2-kg domestic LPG cylinders, providing relief to household consumers for now.
Delhi commercial LPG cylinder price rises by Rs 62.50
In Delhi, the benchmark city, the price of a 19-kg commercial LPG cylinder was Rs 2,747.50 in September. As of October 1, the price has risen to Rs 2,810, meaning consumers will have to pay Rs 62.50 more per cylinder. Prior to this, commercial cylinder prices in Delhi had already been increased by Rs 9.50 in September.
Commercial LPG prices in Mumbai, Chennai
In Mumbai, the price of a commercial cylinder has risen from Rs 2,701 to Rs 2,764, an increase of Rs 63. In Chennai, the 19-kg cylinder now costs Rs 2,983, up from Rs 2,916.50 in September.
Among the major cities listed, Patna saw the steepest hike in the price of commercial LPG cylinders on October 1, with an increase of Rs 71.50. The price of a 19 kg cylinder there has now risen to Rs 3,100.50; it was Rs 3,029 in September. The new rate for a commercial cylinder in Ahmedabad is Rs 2,831.50. Meanwhile, the price has reached Rs 3,046 in Kanyakumari and Rs 3,073.50 in Tawang, Arunachal Pradesh.
Domestic LPG cylinder prices remain unchanged
Despite the hike in commercial cylinder prices, there has been no change in the cost of 14.2-kg domestic LPG cylinders. Domestic cylinders will continue to be available at Rs 942 in Delhi, Rs 941.50 in Mumbai, and Rs 957.50 in Chennai. The price of domestic LPG stands at Rs 1,031.50 in Patna and Rs 979.50 in Lucknow. The latest increase will therefore not directly affect household consumers using domestic LPG cylinders for cooking.
How are LPG prices determined?
International LPG market rates and foreign exchange rates play a crucial role in determining LPG prices. Oil companies generally adjust prices based on the average international benchmark of the preceding month. However, the price of domestic LPG is not determined solely by market forces; the government may decide to keep prices stable to provide relief to domestic consumers when necessary. This is why the price of a domestic cylinder does not necessarily rise in the same proportion, even when LPG becomes more expensive in the international market.
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