Commercial LPG cylinders are now cheaper in these areas
What's the story
The price of a 19kg commercial LPG cylinder has dropped by ₹200-₹600 in some rural parts of Uttar Pradesh. Some gas agencies are even selling these cylinders at rates lower than the official ones, according to a News18 report. For instance, in Kushinagar, the official rate for a commercial cylinder is around ₹2,946 but customers can buy it for between ₹2,400 and ₹2,700.
Demand
Price cut limited to select rural areas
The price cut is not a nationwide move but is limited to select rural areas.
Domestic LPG cylinders haven't seen a similar price drop.
The reduced rates in some rural parts are due to low demand for commercial LPG cylinders.
With fewer hotels, restaurants, and other commercial establishments in these regions, agencies are witnessing less consumption and hence an accumulation of cylinders.
Supply management
Clearing existing stock
Gas agencies have to return empty cylinders when they get a vehicle with fresh stock.
If enough empty cylinders aren't returned, it can impact future supplies.
In some rural areas where demand is low, cylinders can pile up with agencies.
To clear their existing stock and maintain the supply cycle, some agencies are selling them at lower rates.
Booking interval
Booking interval for domestic LPG cylinders revised
In addition to the changes in commercial cylinder availability, the booking interval for domestic LPG cylinders in rural areas has also been revised.
Earlier, the rural customers had to wait 45 days before booking their next domestic cylinder.
The Petroleum Ministry made this change after gas supplies improved and the backlog came down.
Indian Oil, Bharat Petroleum, and Hindustan Petroleum have adopted this new booking interval of 25 days for rural customers.
Verification advice
Things to keep in mind before buying
Customers who come across commercial LPG cylinders being offered below the official price should verify the details before making a purchase.
They should check the cylinder's weight and applicable price, and ask for a receipt for the transaction.
If a cylinder is being offered at an unusually low price, buyers should also confirm that it is being sold through a registered gas agency.