The global energy market is currently grappling with significant supply chain disruptions, primarily driven by escalating tensions in the Middle East and the strategic closure of the Strait of Hormuz. These geopolitical factors have led to a persistent shortage of fuel and Liquefied Petroleum Gas (LPG), resulting in a continuous upward trajectory for commercial gas prices. For the seventh consecutive time this year, the price of a 19kg commercial LPG cylinder has been increased, marking a staggering 97 percent rise in its cost over the past six months. This unprecedented hike has placed a substantial financial burden on commercial establishments and the hospitality sector, which rely heavily on these cylinders for their daily operations.
Unprecedented Hike in Commercial LPG Prices
The month of May was particularly challenging for commercial gas consumers, as they witnessed a massive price hike of 993 rupees. This significant jump pushed the price of a 19kg LPG cylinder beyond the 3000 rupee threshold, a level that has caused widespread concern among business owners. The trend has continued into June, with the latest data indicating that prices in the national capital, Delhi, have risen by 42 rupees. 50 rupees. 50 rupees per cylinder. Over the last six months alone, the total increase in Delhi has reached 1,533 rupees, representing a nearly 97 percent surge that's historically unprecedented.
Stability in Domestic LPG Rates
In a move that brings considerable relief to middle-class families and domestic households, the prices of domestic LPG cylinders have remained unchanged. 2kg domestic cylinders. Consequently, the price of domestic LPG in Delhi remains at 913 rupees. 50 rupees. The last time domestic gas prices were adjusted was on March 7, when a hike of 60 rupees was implemented across the country. Since then, the government has maintained these rates, shielding domestic consumers from the volatility seen in the commercial segment.
Price Increase for 5kg Chhotu Cylinders
While domestic consumers are spared, those using the smaller 5kg cylinders, commonly known as Chhotu cylinders or Free Trade LPG (FTL), are facing higher costs. Effective from June 1, the price of these 5kg cylinders has been increased by 11 rupees in Delhi. 50 rupees in the national capital. These smaller cylinders are often used by low-income individuals, students, and small-scale street vendors, for whom even a marginal increase can impact their daily budget. The new prices are now in effect, reflecting the ongoing pressure on LPG supplies due to international market conditions and logistical challenges in the Middle East region.