Commercial LPG price hiked by ₹195.5 across India
What's the story
In light of rising global oil prices due to the ongoing West Asia conflict, commercial liquefied petroleum gas (LPG) rates have been increased by ₹195.5 today. The price of a 19kg commercial LPG cylinder in Delhi now stands at ₹2,078.50, according to state-owned oil companies. This is the second hike since March 1 when rates were raised by ₹114.5 per cylinder.
Price stability
Domestic LPG prices remain unchanged
Despite the hike in commercial LPG rates, domestic cooking LPG prices have remained stable. The last increase was on March 7 when rates were raised by ₹60 per 14.2kg cylinder to ₹913 in Delhi. State-owned oil companies like Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum revise ATF and LPG prices on the first day of every month based on global price trends and exchange rates.
Price impact
ATF prices also increased
The ongoing West Asia conflict has disrupted energy supply chains, leading to a nearly 50% spike in global oil prices. This has prompted state-owned oil companies to revise their rates for commercial LPG and Aviation Turbine Fuel (ATF) or jet fuel in major Indian cities. In Delhi, the price of ATF has been revised to ₹2,07,341.22 per kiloliter.
Energy transition
India pushes for PNG over LPG
The blockade of the Strait of Hormuz, a critical route for crude oil, has sparked an energy crisis in several parts of the world, including India. In light of this situation, the Indian government is encouraging citizens to switch from LPG to piped natural gas (PNG). Unlike LPG which is heavily reliant on imports from the Middle East, PNG is supplied through a fixed pipeline network.