After repeated increases in the rates of commercial cooking gas and compressed natural gas (CNG), there is increasing concern about the prices of LPG, CNG and PNG. However, for now, domestic LPG prices remain the same.
**How much have prices increased?**
Commercial LPG prices were changed again on June 1. The price of a 19 kg cylinder was increased by ₹42 in Delhi and by ₹53.5 in Kolkata. At the same time, in Delhi, the price of 5 kg ‘free trade’ LPG cylinder was increased by ₹11 to ₹821.5. There was no immediate change in prices for domestic customers.
City Domestic Cylinder Price Commercial Cylinder Price Delhi Rs 913.0 Rs 3071.5 Mumbai Rs 912.5 Rs 3024.0 Kolkata Rs 939.0 Rs 3202.5 Chennai Rs 928.5 Rs 3237.0 Patna Rs 1002.5 Rs 3347.0 Jaipur Rs 916.5 Rs 3099.0
The price of a 14.2 kg domestic LPG cylinder has remained at ₹913 since the ₹60 hike was implemented in early March. These changes have occurred due to reasons such as fuel availability, rising global energy costs and margin pressure on oil companies. The government says it is taking steps to strengthen fuel reserves and manage domestic supply. The aim of the phased increase in prices is to reduce margin pressure on oil companies, but its impact on inflation is yet to be seen.
**Increase in supply rate**
In recent months, the supply rate of a 14.2 kg domestic LPG cylinder has increased by almost two-fifths to ₹1,200 per cylinder. However, common customers are getting the cylinder at the price of ₹ 913 only. This increase in supply costs is due to a sharp increase in Saudi contract prices for propane.
India imports a large portion of its LPG needs, with Saudi Aramco’s contract prices serving as the global benchmark. These prices had increased by 38% in April after the interruption in supply from the Strait of Hormuz. According to government sources, despite rising global prices, domestic LPG rates in India are the lowest in the region. Prices of subsidized and non-subsidized domestic cylinders are lower than similar cooking gas cylinders in neighboring countries, although there is a difference in cylinder size.