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.
Recent Developments
The new price for a 14.2 kilogram gas cylinder has been set at 913 rupees in Delhi, up from 853 rupees. In Mumbai, the price will now be 912.50 rupees, while Kolkata and Chennai will see prices of 939 rupees and 928.50 rupees, respectively. Additionally, rates for commercial LPG gas cylinders have been increased by 115 rupees.
These price hikes come amid an acute shortage of commercial LPG cylinders, which is disrupting the hospitality sector in major cities like Mumbai, Bengaluru, and Chennai. Reports indicate that at least 20 percent of hotels and restaurants in Mumbai have had to shut down temporarily due to this shortage.
Reactions from Key Parties
The Indian Hotels and Restaurants Association (AHAR) has expressed concern, stating, “Despite being a basic operational requirement for restaurants and hotels, commercial cylinders are becoming increasingly difficult to obtain through proper channels.” This sentiment reflects the growing frustration within the hospitality industry as they grapple with supply issues.
In response to the situation, the Indian government has increased the LPG booking period from 21 days to 25 days in an effort to curb hoarding and ensure a more stable supply chain. Furthermore, the government has invoked the Essential Commodities Act to prioritize the allocation of natural gas, ensuring that supply meets the average consumption levels of the past six months.
Looking Ahead
While these measures aim to stabilize the situation, observers remain concerned about the ongoing geopolitical conflicts that could further impact gas cylinder prices. Details remain unconfirmed regarding the exact implications of these conflicts on future pricing trends.
