Amid rising energy prices around the world, state-run oil companies have largely insulated domestic customers from any immediate impact. However, the price of commercial LPG cylinders has been increased by ₹993. This increase comes just two days after the elections ended in five states; The last phase of these elections ended in Bengal on 29 April. Domestic LPG and Aviation Turbine Fuel (ATF) prices for domestic airlines remain unchanged; No changes have been made in them. However, jet fuel prices for international airlines have been increased by 5 percent.
Companies will bear the input costs themselves
Retail prices of petrol and diesel have also been kept stable. According to Indian Oil Corporation (IOC), there has been no change in the prices of major fuels which have a direct impact on the general public. Oil companies have decided to bear the increased input costs themselves—this decision also includes the cost of ATF used by domestic airlines. However, in line with global standards, ATF prices for international aircraft as well as prices of some industrial fuels have also been increased. Meanwhile, the above mentioned increase in the prices of commercial LPG cylinders has come into effect from May 1. In Delhi, the price of a 19 kg commercial cylinder is now ₹3,071.50.
Will inflation increase now?
Given the huge increase of ₹993 in the prices of commercial gas cylinders, a rise in inflation seems almost certain. This will definitely affect your pocket. According to a media report, food delivery platform Eternal said during its recent earnings call that the recent shortage of LPG in some parts of India has, so far, not had any significant impact on its growth or profits. Despite the shortage in local supply, demand on their platform has remained steady. Responding to a question about the potential impact during the current quarter, company founder Deepinder Goyal said that some restaurants in the affected areas faced some temporary supply challenges, but overall business at the platform level continued to operate without any disruption. “So far, there has been no significant impact,” he said.
What will be the effect?
The increase in prices of commercial gas cylinders will increase the cost of cooking for restaurants, *dhabas* and hotels. As a result, prices of *thalis* and snacks may increase. This wedding season, the cost of making sweets and bakery items will increase due to this inflation; As a result, you may have to pay more for cakes and biscuits than before.
Expenses of office goers and those providing tiffin service to students may also increase.
Prices of everything from tea and samosas to chaat and pakodas may rise as small vendors will either increase prices or reduce the quantity served due to increase in input costs.