LPG Prices Hike: From March 7, oil marketing companies raised the price of the 14.2-kg domestic LPG cylinder by ₹60, citing rising global energy costs linked to the geopolitical crisis in the Middle East. After the revision, the price of a non-subsidised cylinder in Delhi has increased to around ₹913, up from ₹853 earlier.
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The increase comes after nearly 11 months without a major revision, making it the second price hike within a year.
Commercial LPG Costs Have Increased
The impact of rising costs is not limited to residential customers; commercial customers also face increased prices for Propane. Commercial propane (19kg) was up around Rs. 115. The new price in Delhi is around Rs. 1883 per commercial 19kg cylinder.
This price increase is expected to increase the operational costs of businesses that depend on gas for cooking, such as restaurants, etc. The food industry insiders expect that eventually this entire cost will be passed along as a price increase to consumers.
Reasons for the Increase
Insiders attribute the recent increases to the ongoing conflict in West Asia, which has disrupted energy supplies and raised fuel prices on a worldwide basis. A large part of India’s LPG supply is imported; therefore, an increase in world prices will increase the cost of domestic LPG.
The government has asked refiners to increase the production of LPG in order to avoid shortages since the conflict has created uncertainty in respect to supply lines/transportation and the delivery of all forms of energy.
For now, the government has reassured that India has adequate fuel reserves and is monitoring the situation closely to ensure supply stability.
The LPG price hike marks the first visible economic impact of the West Asia conflict on Indian households and businesses. With cooking gas becoming costlier and global oil markets under pressure, experts warn that the coming weeks will be crucial in determining whether other fuel prices in India also move upward.
