The price of a 14.2-kg domestic LPG cylinder was hiked due to geopolitical disruptions to fuel supply. This increase has raised concerns among consumers and businesses reliant on these essential commodities.

Recent Developments

Oil marketing companies have increased the prices of non-subsidised domestic LPG gas cylinders by 60 rupees across metropolitan cities in India. In Delhi, the price for a 14.2 kilogram gas cylinder has risen from 853 rupees to 913 rupees. New rates for LPG cylinders in other major cities include 912.50 rupees in Mumbai, 939 rupees in Kolkata, and 928.50 rupees in Chennai.

Additionally, rates for commercial LPG gas cylinders have been increased by 115 rupees, further impacting businesses that rely on these supplies.

Impact on the Hospitality Sector

An acute shortage of commercial LPG cylinders is disrupting the hospitality sector in cities like Mumbai, Bengaluru, and Chennai. Reports indicate that at least 20 percent of hotels and restaurants in Mumbai had to shut down temporarily due to the LPG cylinder shortage.

Responses from Key Parties

The AHAR – Indian Hotels and Restaurants Association has expressed concerns, stating, “Despite being a basic operational requirement for restaurants and hotels, commercial cylinders are becoming increasingly difficult to obtain through proper channels.” This sentiment reflects the growing frustration among hospitality operators.

In response to the situation, the Indian government has increased the LPG booking period from 21 days to 25 days to curb hoarding, invoking the Essential Commodities Act to ensure the supply of natural gas.

Looking Ahead

Officials have emphasized that the supply of natural gas must be treated as a priority allocation, stating that it should be maintained subject to operational availability to meet one hundred percent of average past six-month gas consumption.

Details remain unconfirmed regarding the exact impact of ongoing geopolitical conflicts on future gas cylinder prices, leaving consumers and businesses in a state of uncertainty.

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