LPG price hike: 19kg commercial cylinder becomes costlier by ₹6
What's the story
Oil marketing companies in India have announced a price hike for 19kg commercial LPG cylinders, effective from today. The price has been hiked by ₹6, with the new cost in Delhi being ₹1,803. Other major cities like Mumbai, Kolkata, and Chennai have also witnessed similar hikes with new prices at ₹1,755.50, ₹1,913 and ₹1,965 respectively.
Business impact
Price hike impacts businesses, domestic LPG prices remain stable
This price hike mainly impacts businesses like hotels and restaurants that depend on these cylinders. The increase comes after a cut in February when the price of a 19kg commercial cylinder was slashed by ₹7. However, domestic LPG cylinder prices have remained the same since August 2024, with a 14.2kg cylinder still costing ₹803 in Delhi and varying slightly in other metros.
Price dynamics
LPG price fluctuations and ATF rate adjustments
The fluctuation in LPG prices is determined by international crude oil rates, freight costs, and currency exchange rates. Unlike the LPG price hike, Aviation Turbine Fuel (ATF) prices have seen a marginal reduction of 0.23%, amounting to a ₹222 decrease per kiloliter. The new ATF price in Delhi now stands at ₹95,311.72 per kiloliter after the adjustment.
Airfare influence
ATF rate revision impacts airline operational costs
Notably, this cut in ATF prices comes after a steep 5.6% hike was imposed on February 1, 2025. ATF rates are revised every month and are a major factor in deciding airlines' operational costs, which in turn, influence airfares.