Commercial LPG cylinder prices increased by ₹111; domestic rates unchanged
What's the story
In a major development, the price of commercial liquefied petroleum gas (LPG) cylinders has been hiked by ₹111. The new rates come into effect starting today and will remain applicable until further notice from oil marketing companies. The revised prices have increased the cost of a 19kg commercial LPG cylinder in Delhi to ₹1,691.5 from its previous rate of ₹1,580.5.
Sectoral impact
Price hike impacts various sectors
The increase in commercial LPG prices will have a major impact on sectors that heavily rely on these cylinders, including hotels, restaurants, catering services, and small businesses. Fuel costs are a major part of their operating expenses. The unchanged domestic LPG prices, however, provide some relief to household budgets amid the latest revision in commercial rates. In Delhi, a domestic LPG cylinder costs ₹853, while in Mumbai it costs ₹852.5.
Pricing factors
Factors influencing LPG prices
LPG prices are determined by several factors such as Import Parity Price (IPP), international fuel prices, rupee-dollar exchange rate, freight charges, insurance and local taxes. These state-level taxes and logistics costs lead to regional price variations.