Commercial LPG cylinder price hiked by ₹993 to ₹3,072
What's the story
The price of a 19kg commercial LPG cylinder has been increased by ₹993, effective from May 1. The revised rate now stands at ₹3,071.50 in Delhi. The latest hike follows two previous increases: a ₹195.5 raise on April 1 and a ₹114.5 jump on March 1. However, the prices for domestic cylinders have remained unchanged. The hike comes amid ongoing geopolitical tensions and supply chain disruptions affecting India's LPG imports.
Import reliance
India imports nearly 60% of its LPG requirements
India relies on imports for nearly 60% of its LPG requirements. Prior to the US-Israel strikes on Iran on February 28 and Tehran's retaliation, over half of India's crude oil imports—around 30% of gas and a staggering 85-90% of LPG—came from West Asian nations like Saudi Arabia and the UAE.
Supply impact
Geopolitical tensions affecting gas supplies in India
The ongoing conflict has resulted in the blockade of the Strait of Hormuz, a key transit route for Gulf energy supplies. While India has managed to partially mitigate crude supply disruptions by sourcing oil from other countries like Russia, gas supplies to industrial users have been curtailed. Additionally, LPG availability for commercial establishments such as hotels and restaurants has also been reduced due to these geopolitical tensions.
Policy measures
Government suspends issuance of new LPG connections
In light of the ongoing availability crisis, the government has also suspended the issuance of new LPG connections. This measure is aimed at managing the limited supply and ensuring that existing users have access to LPG for their domestic needs. The decision comes as a part of India's broader strategy to navigate through these challenging times and maintain stability in essential services like cooking gas supply.