Commercial LPG cylinder in Delhi to now cost ₹3,113 after latest hike: Report

THe terms of commercial message LPG cylinders used by hotels, restaurants and other businesses was increased by ₹42 per 19-kg piston chamber on mon, word agency PTI reported citing industry sources.Following the revision, the price of a 19-kg commercial LPG cylinder in Delhi has risen to ₹3,113.50 from ₹3,071.50 earlier.However, there was no change in the rates of domestic LPG cylinders used in household kitchens. The price of a 14.2-kg domestic LPG cylinder remains unchanged at ₹913.The latest revision affects commercial consumers, while households will continue to pay the existing rate for cooking gas.However, there was no change in the price of domestic cooking gas used in household kitchens. The rate of a 14.2-kg domestic LPG cylinder remains unchanged at ₹913 in Delhi.Why are fuel prices rising?The latest increase in commercial LPG prices comes against the backdrop of rising global energy costs triggered by the ongoing conflict between the United States and Iran. The conflict has raised concerns over disruptions in crude oil and liquefied petroleum gas supplies from the Middle East, particularly through the Strait of Hormuz, one of the world's most critical energy shipping routes.India imports more than 85 per cent of its crude oil requirements, making domestic fuel prices vulnerable to developments in global energy markets. Any threat to supplies from the Gulf region typically leads to an increase in international crude prices, which eventually impacts the cost of petroleum products and LPG in the country.Commercial LPG prices have surged in recent monthsThe commercial LPG segment has witnessed sharp price volatility in recent months. Monday's increase follows a series of steep hikes that have significantly raised operating costs for restaurants, hotels, caterers and other businesses that rely heavily on LPG.In May, oil marketing companies had raised the price of commercial LPG cylinders by nearly ₹1,000, taking the Delhi rate to ₹3,071.50 per cylinder. Before that, prices were increased by ₹195.5 in April and by ₹114.5 in March. The cumulative increase over the last few months has substantially pushed up fuel expenses for commercial users.Industry experts say commercial LPG prices are more closely linked to international energy rates and are revised more frequently than domestic cooking gas prices, which are often influenced by government policy considerations and subsidy decisions.Petrol and diesel prices also under pressureThe pressure from global energy prices has also been reflected in retail fuel rates. Petrol and diesel prices have seen multiple upward revisions in recent weeks as crude oil prices surged following the escalation of tensions in West Asia.Petrol and diesel prices were increased several times during May, with the cumulative hike amounting to nearly ₹5 per litre in major cities, including Delhi. The increases were attributed to higher international crude oil prices and concerns over supply disruptions arising from the US-Iran conflict.Rising fuel prices have broader implications for the economy as they increase transportation and logistics costs, which can eventually feed into retail inflation. Businesses dependent on commercial LPG have already warned that sustained increases in fuel costs could force them to revise prices of goods and services.No change in domestic LPG ratesDespite the increase in commercial LPG rates, domestic consumers have been spared any immediate impact. The price of a 14.2-kg domestic LPG cylinder remains unchanged at ₹913.Household cooking gas rates were last revised in March, when prices were increased by ₹60 per cylinder. The divergence between commercial and domestic LPG pricing reflects the government's efforts to shield households from frequent fuel price fluctuations while allowing market-linked revisions for commercial consumers.