Commercial LPG Prices Increased Amid Deepening Gas Shortage; Domestic Rates Unchanged

New Delhi: Against the backdrop of a worsening cooking gas shortage attributed to the West Asian conflict and what critics describe as central government inaction, oil marketing companies have effected a sharp hike in commercial LPG cylinder prices, dealing a fresh blow to the hospitality and food service sectors.

The price of a 19-kilogram commercial cylinder in Delhi has been raised by ₹195.50, bringing the revised rate to ₹2,078.50. This follows an earlier increase of ₹114.50 per cylinder on March 1. Domestic LPG rates, however, remain unchanged, with a 14.2-kg household cylinder continuing to be priced at ₹913 in Delhi — though a ₹60 hike had been effected in the first week of March.

Prices are revised on the first of every month by state-run oil companies — Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum — based on prevailing international market rates and foreign exchange movements. Global crude and gas prices have risen by nearly 50 per cent following the disruption of energy supply chains caused by the ongoing West Asian conflict.

Even as the central government maintains that domestic LPG distribution is proceeding without disruption, long queues at distribution centres across the country tell a different story. In major cities including Delhi, consumers who have placed online bookings report waiting several days for delivery. In Hyderabad, authorities seized 414 LPG cylinders that had allegedly been stockpiled for black market sale.

The government's push to expand piped natural gas (PNG) as an alternative to LPG has gained little traction. Against a total of 33 crore LPG connections currently active across the country, PNG connections stand at merely 1.59 crore — a figure that underscores the slow pace of the transition. Observers note that had the Centre moved more decisively to accelerate PNG expansion at an earlier stage, the current crisis could have been substantially mitigated.

LPG Tanker Arrives at Mumbai Port

In a modest relief measure, the vessel BW Tyr, which had been stranded in the Strait of Hormuz, has arrived at Mumbai port carrying 47,115 tonnes of LPG, adding to the country's strained reserves.