LPG Cylinder Price: Rates Climb for the Sixth Time in a Row

As the new month begins, the prices of LPG cylinders have taken another upward turn, giving consumers another blow in terms of inflation. Indian Oil Corporation (IOC) has raised the price of commercial LPG cylinders by Rs 16.50, making it the sixth consecutive price hike. Following this increase, the cost of a 19 kg commercial LPG cylinder in Delhi has reached Rs 1818.50 per cylinder.

The latest price hike comes after months of gradual increases in LPG cylinder rates. As of December 1, 2024, the price of the 19 kg cylinder in Delhi has gone up by Rs 16.50, reaching Rs 1818.50. This is a part of a series of hikes that started in July 2024. In fact, this is the sixth consecutive month that the price of commercial cylinders has risen.

To put things into perspective, the price of the 19 kg cylinder in Delhi was Rs 1646 in July 2024, and by November, it had already climbed to Rs 1802. The price hike continued through December, bringing more pressure on small businesses, especially those in the food and catering industries, who depend on these cylinders.

Domestic Gas Cylinder Prices Stay Stable

On a brighter note, the prices of domestic LPG cylinders have not changed. The cost of the 14.2 kg domestic gas cylinder in Delhi remains at Rs 808, the same price as it has been since August 2024. This price stability brings some relief to households across the city. Additionally, beneficiaries of the Pradhan Mantri Ujjwala Yojana continue to receive a subsidy of Rs 300 per cylinder, reducing the financial burden.

However, while the prices of domestic gas cylinders have been steady, it is important to note that the rising costs of commercial cylinders will still affect many households indirectly. Increased costs for businesses often result in higher prices for goods and services, making it harder for consumers to manage household expenses.

With this price hike, commercial LPG cylinder prices have now crossed Rs 1800 in major cities like Delhi. The increase in costs is particularly significant for those who rely on these cylinders for their businesses. From caterers to small restaurants, the price hike directly impacts their overhead costs, forcing them to either absorb the costs or pass them on to customers, which could further fuel inflation.

In Delhi, the commercial gas cylinder has seen a series of increases over the last few months. From Rs 1646 in July to Rs 1818.50 in December, the prices have steadily risen. This constant price increase has left businesses struggling to adjust, and the common people are already feeling the effects of inflation in their daily lives.

Why Are Prices Going Up?

The rising demand for energy, coupled with global market trends, has led to a surge in the cost of raw materials. Oil companies, like Indian Oil, have adjusted their prices to cope with these changes. The increase in the price of commercial LPG cylinders is a result of these factors, which are largely out of the control of the general public.

While domestic LPG cylinder prices have not been altered, the pressure on households remains, as they have to bear the brunt of rising prices in other areas of life, including food and transportation.

For those who benefit from the Pradhan Mantri Ujjwala Yojana, the Rs 300 subsidy provides some relief. It helps offset the rising costs, especially for families in rural areas who depend on subsidized LPG cylinders. The government’s initiative to provide affordable cooking gas to low-income families has helped millions, but the continuous rise in commercial cylinder prices remains a concern.

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