The Union government, on Friday, steeply increased the cost of 19-kg commercial LPG cylinders and 5-kg "mini" or "chotu" LPG cylinders. According to news agency ANI, the price of a 19-kg commercial cylinder jumped by ₹993, and a 5-kg mini cylinder increased by ₹261.
Indian Oil Corporation confirmed these price adjustments for bulk and commercial LPG cylinders, noting that these represent a small fraction – about 1 per cent – of their total network's consumption.
In Delhi, a 19-kg commercial LPG cylinder will now set buyers back ₹3,071.50. In Mumbai, the same cylinder is priced at ₹3,024. For the smaller 5-kg domestic cylinders, prices in Delhi are now around ₹339, with similar pricing trends observed in Mumbai.
This marks the second consecutive month of price hikes for these commercial and mini cylinders. Last month too saw state-owned oil companies increase the prices of both these cylinder types.
Impact on businesses and consumers
The significant rise in the price of 19-kg cylinders is expected to directly affect businesses such as restaurants, hotels, and bakeries that depend on commercial LPG for their daily operations.
Industry experts suggest that these establishments may pass on a portion of these increased costs to consumers. This could potentially lead to higher prices for food and dining experiences in the coming weeks.
Domestic consumers protected from price volatility
However, in a major relief for most households and businesses, prices for petrol, diesel, and domestic LPG cylinders (14.2-kg) have remained unchanged. Kerosene distributed under the Public Distribution System (PDS) has also seen no change in its price.
Aviation turbine fuel (ATF) for domestic airlines has also seen no revision.
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IndianOil said that state-owned oil companies have chosen to absorb the recent rise in global fuel prices for these specific categories. This decision aims to shield airlines and consumers from international market fluctuations.
As per practice, ATF prices are typically revised on the first of each month based on input costs. While domestic airlines are unaffected, international carriers have experienced an increase in their ATF prices.
Overall price stability
IndianOil said that retail prices for petrol and diesel remain steady for consumers, who constitute approximately 90 per cent of the total consumption for these fuels.
The company indicated that roughly 80 per cent of petroleum products have experienced no price changes, ensuring stability for the majority of consumers.
Price revisions have been limited to specific industrial segments, which account for a smaller portion of overall consumption and are subject to routine monthly adjustments based on global benchmarks.
About 4 per cent of petroleum products have seen a price decrease, reflecting global market fluctuations.
In summary, approximately 80 per cent of petroleum products have maintained their prices, 4 per cent have seen a decrease, and 16 per cent – primarily industrial fuels – have registered an increase.
IndianOil emphasised that these measures represent a thoughtful approach by oil marketing companies to align with global trends while safeguarding domestic consumers and maintaining economic stability.