Gas Cylinder Price Update: Recent Increases Impacting India
The price of a 14.2-kg domestic LPG cylinder was hiked due to geopolitical disruptions to fuel supply. This increase has now been compounded by a recent decision from oil marketing companies.
Recent Developments
Oil marketing companies have increased the prices of non-subsidised domestic LPG gas cylinders by 60 rupees across metropolitan cities in India. In Delhi, the price for a 14.2 kilogram gas cylinder has risen from 853 rupees to 913 rupees. The new rates for LPG cylinders in other major cities include 912.50 rupees in Mumbai, 939 rupees in Kolkata, and 928.50 rupees in Chennai.
Additionally, the rates of commercial LPG gas cylinders have been increased by 115 rupees. This has led to significant disruptions in the hospitality sector, particularly in cities like Mumbai, Bengaluru, and Chennai.
Impact on the Hospitality Sector
An acute shortage of commercial LPG cylinders has forced at least 20 percent of hotels and restaurants in Mumbai to shut down temporarily. The situation has raised alarms within the industry, as many establishments rely heavily on these cylinders for their operations.
AHAR – the Indian Hotels and Restaurants Association, expressed concerns stating, “Despite being a basic operational requirement for restaurants and hotels, commercial cylinders are becoming increasingly difficult to obtain through proper channels.” This highlights the growing challenges faced by the hospitality sector amid rising costs and supply shortages.
Government Response
In response to the ongoing crisis, the Indian government has increased the LPG booking period from 21 days to 25 days to curb hoarding. Furthermore, the government has invoked the Essential Commodities Act to ensure the supply of natural gas, emphasizing that “the supply of natural gas must be treated as priority allocation and shall be maintained subject to operational availability to one hundred percent of their average past six-month average gas consumption.”
Looking Ahead
As the situation continues to evolve, observers remain cautious about the future of gas cylinder prices. Details remain unconfirmed regarding the exact impact of ongoing geopolitical conflicts on future gas cylinder prices. The hospitality sector and consumers alike are closely monitoring these developments as they unfold.
