- Commercial 19-kg LPG cylinder prices slashed by Rs 183.50 July 1.
- However, 5-kg ‘Chhotu’ cylinder prices remained unchanged from June.
- Small businesses continue paying higher rates set last month.
Businesses using commercial LPG cylinders have received a significant breather from July 1 after oil marketing companies (OMCs) slashed the price of 19-kg commercial cylinders by up to Rs 183.50. However, consumers and small businesses relying on the 5-kg Free Trade LPG (FTL), popularly known as the ‘Chhotu’ cylinder, have not received any fresh relief.
While the latest monthly revision has reduced commercial LPG prices and left 14.2-kg domestic LPG cylinder rates unchanged, the 5-kg FTL cylinder continues to be sold at the higher price introduced during the previous monthly revision that came into effect on June 1.
According to media reports, the 5-kg FTL cylinder in Delhi continues to retail at Rs 821.50 after its price was increased by Rs 11 last month.
Commercial LPG Prices Cut From July 1
OMCs have reduced the price of 19-kg commercial LPG cylinders by up to Rs 183.50 with effect from July 1.
The reduction has brought relief to restaurants, hotels, dhabas and other commercial establishments that depend heavily on LPG for daily operations.
However, there has been no change in the price of the standard 14.2-kg domestic LPG cylinder, offering neither additional relief nor any fresh burden for household consumers.
No Change for 5-kg ‘Chhotu’ LPG Cylinder
Unlike commercial LPG, the 5-kg Free Trade LPG cylinder has not been revised in the latest monthly review.
The cylinder continues to be sold at the rates notified on June 1, when OMCs raised its price by Rs 11. In Delhi, the 5-kg cylinder continues to cost Rs 821.50.
The absence of a price revision means users of smaller LPG cylinders continue to pay the higher rates introduced a month ago.
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Who Uses the 5-kg FTL Cylinder?
The 5-kg FTL cylinder is different from the regular domestic LPG cylinder supplied to households.
Its compact size makes it popular among tea stalls, food vendors, roadside eateries, temporary kitchens, small commercial establishments and travellers. It is also preferred by consumers who require smaller quantities of cooking gas or frequently relocate.
Why Was the Price Increased?
According to media reports, LPG prices are reviewed by oil marketing companies on the first day of every month.
The June increase in the price of the 5-kg FTL cylinder came amid elevated international crude oil and gas prices, driven by geopolitical tensions in West Asia and concerns over global energy supplies.
Although commercial LPG prices have now been reduced, the 5-kg cylinder has not yet seen a corresponding revision.
Small Businesses Continue to Bear Higher Costs
The continued higher price of the 5-kg FTL cylinder is expected to impact small enterprises that depend on it for everyday operations.
Tea stalls, snack vendors, street food outlets and other micro businesses remain among the biggest users of these cylinders. While the Rs 11 increase implemented in June may appear modest, it adds to operating expenses at a time when many small businesses continue to face higher input costs.
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Will Prices Change Again?
LPG prices are revised every month based on movements in international crude oil and natural gas markets.
While commercial LPG consumers have benefited from a sharp reduction this month and domestic LPG prices remain unchanged, consumers using 5-kg FTL cylinders will now be watching the next monthly revision to see whether they receive any relief if global energy prices continue to soften.
