Big Jump in Commercial LPG Rates: 19-kg Cylinder Now ₹3,071.5 in Delhi

Mumbai: In a significant price revision, the cost of 19-kg commercial LPG cylinders has been increased by ₹993, with the new rate reaching ₹3,071.5 in Delhi, according to Indian Oil Corporation (IOC).

The sharp hike, effective immediately, is expected to impact restaurants, hotels, and other commercial establishments that rely heavily on LPG for daily operations. However, in a relief to households, domestic LPG cylinder prices remain unchanged.

Retail fuel prices have also been kept steady. Petrol and diesel rates continue to remain unchanged despite rising global energy costs. Additionally, aviation turbine fuel (ATF) prices for domestic airlines have not been revised, offering some respite to the aviation sector.

While consumers have been shielded from frequent price fluctuations, oil marketing companies are facing mounting financial pressure. Firms are currently procuring crude oil at elevated international prices but are unable to fully pass on the increased costs to end-users, leading to growing under-recoveries.

This situation places the government in a delicate position. Any increase in retail fuel prices could help ease the burden on oil companies but may also fuel inflation and slow economic growth. At the same time, the Centre is already grappling with higher subsidy outlays, particularly for LPG and fertilisers.

With continued volatility in global energy markets, the strain on oil companies is expected to intensify. Industry observers believe that if the current trend persists, oil firms may seek financial support from the government to offset their losses.

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