New Delhi, Dec 01, 2021: State-owned oil marketing corporations Indian Oil, Bharat Petroleum and Hindustan Petroleum have raised the price of the 19-kg commercial liquefied petroleum gas (LPG) cylinder by more than ₹100 with effect from December 1, even as they left household cooking gas prices unchanged.
Consequently, a 19-kg cylinder supplied by Indian Oil in Delhi will cost ₹2,101 as against ₹2,000.50; in Mumbai ₹2,051 (₹1,950); Kolkata ₹2,177 (₹2073.50); Chennai ₹2,234.50 (₹2,133) and Hyderabad ₹2,278 (₹2,175).
Wednesday’s revision follows the ₹266 increase, one of the steepest in many years, the companies had announced last month in the price of the refill, which is meant for use of commercial establishments, big and small, from tea stalls, restaurants to caterers. The nearly ₹370 increase in a short span is thus likely to prompt many users, especially smaller eateries, consider revising rates on the menu.
Intense competition, a need to remain in business as well as seasonal variations in the LPG prices – winter in the northern hemisphere pushes up global demand – may still hold back many from resorting to a pass through. As a relief measure, an association of hotels and restaurants was recently reported to have appealed to the Centre to reduce the Goods and Services Tax (GST) on commercial LPG from 18% to 5%.
Petroleum products prices in the country are linked to those of the respective products prices in the international market. However, the government continues to modulate the effective price to consumer for subsidised domestic LPG and retail selling price of kerosene supplied under the public distribution system, Union Minister of State for Petroleum and Natural Gas Rameswar Teli had told the Rajya Sabha recently.
While increasing the commercial LPG price on Wednesday, the oil companies have kept the domestic LPG (14.2 kg cylinder) price unchanged. The move to raise the commercial LPG price comes amid growing concerns over Omicron, the new variant of coronavirus, and its impact on the economy.