LPG Price Shock: Commercial Cylinder Rates Skyrocket Amid West Asia Geopolitical Tensions; Domestic Gas Stays Stable
LPG Price Shock: Commercial Cylinder Rates Skyrocket Amid West Asia Geopolitical Tensions; Domestic Gas Stays Stable
New Delhi: Escalating geopolitical tensions in West Asia paired with major supply chain bottlenecks have dealt another inflationary blow to consumers and the business community alike. Oil Marketing Companies (OMCs) have implemented multiple price hikes on 19 kg commercial LPG cylinders. Furthermore, the prices of 14.2 kg domestic cooking gas cylinders used in household kitchens also saw a price revision earlier this month. Here is a breakdown of what commercial and domestic gas cylinders are costing in your city right now.
Commercial LPG Prices Touch New Highs
The cost of 19 kg commercial cylinders—widely used across hotels, restaurants, and various industrial sectors—is currently skyrocketing. In Delhi, a commercial cylinder has climbed to ₹3,113.50. Meanwhile, it has reached ₹3,255.50 in Kolkata, ₹3,067.50 in Mumbai, and ₹3,283 in Chennai. According to government guidelines, commercial LPG rates are deregulated and are revised monthly based on real-time market dynamics.
The Global Energy Crisis Behind the Surge
This sudden upward trajectory in prices is primarily driven by an unfolding global energy crisis. Approximately 20% to 30% of the world’s total LPG supply is currently stranded in the Strait of Hormuz transit corridor. This sharp contraction in available supply has triggered a massive 44% spike in the Saudi Contract Price, driving international baseline rates from $542 per metric ton in March up to $780 per metric ton for April.
Relief for Households
Despite the sharp spike in commercial gas costs, ordinary household budgets have successfully escaped the brunt of the shock. The prices of 14.2 kg domestic cylinders have been kept stable across major metros. The retail rate remains steady at ₹942 in Delhi, ₹939.50 in Noida, ₹941.50 in Mumbai, and ₹968 in Kolkata.
Additionally, beneficiaries under the Pradhan Mantri Ujjwala Yojana (PMUY) continue to receive their cylinders at the heavily subsidized rate of ₹613. Data shared by the Ministry of Petroleum highlights that domestic LPG rates in India remain among the lowest globally when compared to neighboring nations like Pakistan, Sri Lanka, and Nepal.
