- Small LPG cylinder prices jump, impacting small businesses.
- Commercial LPG cylinder costs see significant increase.
- Domestic LPG prices remain stable for households.
LPG Price Hike: Prices of small, non-subsidised LPG cylinders have been raised sharply from May 1, even as household cooking gas rates remain unchanged. The move comes alongside a steep hike in commercial LPG, signalling pressure from global energy trends while shielding domestic consumers.
5 kg ‘Mini’ Cylinder Price Hiked
The price of the 5 kg Free Trade LPG (FTL) cylinder, commonly referred to as the ‘chotu’ or mini cylinder, has been increased by Rs 261 per cylinder with immediate effect, according to a report by ANI.
These cylinders are typically used by small establishments and for limited commercial purposes, and are priced closer to market rates, making them more sensitive to international price movements.
Commercial LPG Sees Sharp Jump
The revision also includes a significant increase in commercial LPG. The 19 kg cylinder has been hiked by Rs 993, taking the price in Delhi to Rs 3,071.50 from May 1.
City-wise prices for 19 kg cylinders now stand at:
New Delhi: Rs 3,071.50
Mumbai: Rs 3,024
Kolkata: Rs 3,202
Chennai: Rs 3,237
The increase is expected to directly impact restaurants, hotels, bakeries and other businesses that rely heavily on commercial LPG, with costs likely to be partially passed on to consumers.
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No Change for Domestic LPG Users
In contrast, there has been no change in the price of the 14.2 kg domestic LPG cylinder, which continues to serve around 33 crore households across the country.
Oil marketing companies have maintained stability in retail prices of petrol, diesel and domestic LPG to protect consumers from global price volatility, as per a statement from Indian Oil Corporation.
Why Prices Are Moving
The latest revision comes amid elevated and volatile global crude oil prices linked to geopolitical tensions in West Asia. Brent crude touched $126 per barrel before easing to $113, underlining the pressure on energy markets.
Since India imports a large share of its LPG requirements, prices of commercial and non-subsidised cylinders are aligned with international benchmarks and are typically revised on the first day of every month.
Who Is Affected Most?
While domestic users remain insulated, the burden is shifting towards businesses and small commercial users. The 5 kg FTL cylinder, widely used by smaller vendors and outlets, will now become more expensive, potentially affecting operating costs at the micro level.
Indian Oil said around 80 per cent of petroleum products have seen no price change this month, ensuring stability for the majority of consumers. About 16 per cent, largely industrial and commercial fuels, have seen price increases, while nearly 4 per cent have recorded a decrease.
Bulk and commercial LPG cylinders account for less than 1 per cent of total consumption, the company noted, indicating that the impact is limited to specific segments.
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New Rules Around LPG Usage
Alongside price changes, certain operational rules remain in focus. The waiting period for booking domestic LPG refills has been extended to 25 days in urban areas and up to 45 days in rural areas to prevent hoarding amid uncertainty.
Delivery Authentication Code (DAC)-based delivery has also expanded significantly, now covering over 93 per cent of deliveries. The system requires consumers to provide a code received on their registered mobile number to ensure proper delivery and prevent diversion.
