Commercial LPG Price Hike: 19 kg Cylinder Up Rs 42 In Delhi, Rs 53.50 In Kolkata From Today; Domestic Prices Unchanged

New Delhi: Costs for commercial LPG cooking gas have gone up from Monday (June 1), with oil marketing companies hiking the price of 19 kg cylinders used by hotels, restaurants and small businesses. According to reports, in Delhi, the 19 kg commercial LPG cylinder will now be sold at Rs 3113.50 after a hike of Rs 42, while Kolkata has seen a steeper increase of Rs 53.50, taking the price to Rs 3255.50 per cylinder.

The revision of price also covers smaller commercial packs, including the 5 kg LPG cylinder. Reports suggested that the 5 kg Free Trade LPG (FTL) cylinder, which is popular with kiosks, tea stalls and catering outlets, has been increased by Rs 11 in Delhi. Following the hike, the customers in the national capital will now pay Rs 821.50 for each 5 kg FTL cylinder. The new rates come into effect from 1 June.

Though the commercial users will feel the pinch of price increase, amidst the West Asia crisis and Strait of Hormuz blockade, the households using domestic LPG cylinders have been spared. According to sources, there is no change in the price of subsidised domestic cylinders for the month, bringing relief to millions of families across the country.

Delhi And Kolkata See Sharper Increases For Bulk Users

The monthly revision by oil companies has pushed up operating costs for food businesses that depend on 19 kg cylinders. In Delhi, the Rs 42 increase takes the commercial cylinder to Rs 3113.50, while Kolkata’s hike of Rs 53.50 is among the bigger adjustments this month, lifting the price there to Rs 3255.50. The commercial cylinder customers stated that even a small revision adds up to monthly expenses for such establishments running multiple burners through the day.

The sources stated that the 5 kg FTL category has also been adjusted, with an increase of Rs 11. Following the increase, the Delhi price for a 5 kg FTL cylinder now stands at Rs 821.50. These cylinders are not subsidised and are sold under the Free Trade LPG scheme, which allows direct sale to commercial buyers without domestic subsidy.

Government Pushes For Stronger Fuel Buffers As Demand Spikes

Speaking earlier on Friday, Sujata Sharma, Joint Secretary at the Ministry of Petroleum and Natural Gas, said that the government is focused on strengthening fuel security through strategic reserves while also acting firmly against hoarding and diversion. "Regarding strategic reserves, we are working on the strategic reserves also. And we have asked the oil marketing companies to work out that the LPG reserve that should be a minimum 30 days with them and they are working on it. And similarly, for crude also, we are working," Sharma said, during an inter-ministerial briefing.

She added that precautionary steps have been mapped out to cushion the system against any supply shocks. On current availability, the Joint Secretary sought to allay concerns, saying, "We have sufficient stock of petrol, diesel and LPG, natural gas and fruit inventories are tied up. All our refineries are operating at optimum level and LPG production is all time high, almost 90 DMT per day. No dry out has been reported on the LPG distributorship."

She also noted that unusual buying patterns were showing up at retail outlets, asserting, "But it is being seen on retail outlets that there is abnormal sale at many places. Some are due to agricultural demand and some are due to bulk sales." The data reflected a surge in offtake. Over 30% growth is being seen overall, with 14 districts reporting over 100% growth in petrol sales, while 6 districts saw a 38% drop in OMC sales.

To curb diversion, enforcement has been stepped up, Sujata Sharma said, adding, "In the last four days, there have been 6,500 raids on LPG. Five FIRs have been registered and two people have been arrested." At retail outlets, 900 raids in 2 days led to the seizure of 417 litres of petrol and 75,715 litres of diesel, with 12 FIRs and 15 arrests.

Explaining LPG supply dynamics, the Joint Secretary said that output depends on refinery optimisation. "Right now, the demand is something around 72 TMT and then we are producing 50 to 52 TMT in-house in our domestic refineries," she said, adding that the LPG backlog has come down to 4.5 days.

Domestic Users Get Breather

As per sources, the domestic LPG cylinder prices remain unchanged despite the revision in commercial rates. The decision not to change the prices of the commercial cylinders means that the 14.2kg household cylinder continues at the existing rate in Delhi and other metro cities, shielding families from an additional burden at the start of June.

The hike in commercial cylinder prices is expected to impact restaurants and caterers already grappling with rising food input costs. Many small vendors who switched to 5 kg FTL cylinders to manage space and cash flow will now have to absorb the Rs 11 increase per cylinder. The larger hotels in Delhi and Kolkata using 19 kg cylinders in bulk may review kitchen budgets as the Rs 42 and Rs 53.50 increases take effect.

Notably, the oil companies revise commercial LPG prices on the first of every month based on average international benchmark rates and the rupee-dollar exchange rate. The domestic cylinder rates are reviewed separately and have stayed steady this time, even as global crude prices remain volatile.