State-owned oil marketing corporations Indian Oil, Bharat Petroleum and Hindustan Petroleum have raised the price of the 19-kg commercial 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, the companies had announced last month in the price of the refill, which is meant for 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, consider revising rates on the menu.
Intense competition, a need to remain in business and seasonal variations in the LPG prices — winter in the northern hemisphere pushes up global demand — may still hold back 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 the GST on commercial LPG from 18% to 5%.
Petroleum products prices are linked to those in the international market. However, the Government continues to modulate the effective price to consumer for subsidised domestic LPG and retail selling price of kerosene supplied under the public distribution system, Union Minister of State for Petroleum and Natural Gas Rameswar Teli had told the Rajya Sabha recently.
The increase in the commercial LPG prices comes amid growing concerns over Omicron and its impact on the economy.