Commercial LPG cylinder prices have seen another significant increase, with rates rising by up to ₹53.5 per cylinder in major Indian cities effective June 1. This marks the second such hike since May 1, impacting businesses and commercial establishments across the country.
Delhi and Kolkata See Price Adjustments
In Delhi, the price of a 19 kg commercial LPG cylinder has gone up by ₹42, bringing the new cost to ₹3,113.5. Kolkata experienced an even steeper revision, with prices climbing by ₹53.5 to reach ₹3,255.5 per cylinder. Additionally, the 5 kg Free Trade LPG cylinder also saw an increase of ₹11, now priced at ₹821.5 in Delhi. Domestic LPG cylinders, primarily used by households, remain unaffected by these latest revisions.
Reasons Behind the Hike and Previous Increases
This latest adjustment follows a substantial hike on May 1, when oil companies raised commercial LPG prices by ₹993 per cylinder. The ongoing increases are largely attributed to disruptions in global LPG supplies, which have been triggered by the persistent Middle East conflict. These international pressures continue to influence domestic pricing despite government efforts to stabilize the market.
Government's Proactive Measures on Supply Security
Amidst mounting supply pressures, the Indian government is actively working to bolster fuel reserves and optimize domestic supply chains. During a recent inter-ministerial briefing, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, confirmed that India maintains sufficient stocks of petrol, diesel, LPG, and natural gas, with refineries operating at peak capacity. LPG production has reached a record high of approximately 90 metric tonnes per day, ensuring no reported disruptions at distributorships.
To further enhance strategic reserves, oil marketing companies have been directed to maintain a minimum 30-day LPG reserve. While the daily LPG requirement stands at around 72,000 metric tonnes, domestic refineries are producing between 50,000 and 52,000 metric tonnes. Improved supply management has reportedly reduced the LPG backlog to 4.5 days.
Enforcement Actions Against Abnormal Sales
Despite robust supply management, authorities have noted a troubling trend of abnormal sales at several retail outlets, partly driven by agricultural demand and bulk purchases. Overall fuel sales have shown a growth of over 30%, with certain districts reporting more than 100% growth in petrol sales alone.
In response, enforcement agencies have intensified inspections. Over a four-day period, approximately 6,500 raids related to LPG distribution led to five First Information Reports (FIRs) and two arrests. A separate two-day sweep of 900 inspections at fuel retail outlets resulted in the seizure of 417 litres of petrol and 75,715 litres of diesel, with 12 FIRs registered and 15 arrests made, signaling a strong government stance against diversion and hoarding.