Businesses using commercial LPG cylinders will have to pay more from June 1 as oil companies have increased the prices of 19-kg commercial cylinders. In Delhi, the price has gone up by Rs 42, taking the retail rate to Rs 3,113.50 per cylinder. In Kolkata, the increase is steeper at Rs 53.50, with the new price reaching Rs 3,255.50. The price of 5-kg Free Trade LPG (FTL) cylinders has also been revised upward by Rs 11. Consumers in Delhi will now have to pay Rs 821.50 for these cylinders.
The increase in fuel costs is unlikely to remain limited to businesses alone. Higher operating expenses often translate into increased prices for goods and services, especially in sectors linked to food, transportation and hospitality.
As a result, consumers may gradually see higher costs for meals, deliveries and other everyday services. Economists warn that sustained increases in fuel prices could also contribute to inflationary pressures in the coming months.
Domestic LPG rates stay the same
While commercial users face higher costs, there is some relief for households. Sources have confirmed that there has been no change in the prices of domestic LPG cylinders used for cooking in homes. The existing rates for household consumers will continue for now.
Rising fuel costs add to pressure
Just days before the LPG revision, Compressed Natural Gas (CNG) prices were raised by Rs 2 per kilogram in Delhi and nearby cities, taking the retail rate to Rs 83.09 per kg. The hike marked the fourth increase in less than two weeks, with CNG prices rising by a total of Rs 6 per kg since May 15.
Petrol and diesel prices have also witnessed multiple revisions recently. Oil marketing companies have gradually passed on the impact of higher global crude oil prices, resulting in a cumulative increase of Rs 7.35 per litre in petrol and Rs 7.53 per litre in diesel.
The simultaneous rise in transportation and cooking fuel costs is expected to increase operational expenses for several sectors. Businesses that depend heavily on both logistics and commercial LPG, including restaurants, hotels, catering services and cloud kitchens, are likely to feel the impact the most.
Mounting pressure due to Middle East tensions
Experts attribute the sharp increase in commercial LPG prices largely to ongoing disruptions in global energy markets. The continuing tensions in the Middle East, particularly around the Gulf region, have created uncertainties in energy supply chains. These developments have affected the movement of LPG cargoes and pushed international prices higher, making imports more expensive.
India sources a significant portion of its crude oil, natural gas and LPG requirements from Gulf nations. Although alternative arrangements have helped ensure adequate supplies of crude oil and natural gas, LPG availability has remained relatively tight, putting additional pressure on commercial consumers.
According to the Ministry of Petroleum and Natural Gas, oil marketing companies have been instructed to maintain a minimum 30-day LPG reserve. Officials say the country currently has adequate stocks of petrol, diesel, LPG and natural gas, while refineries are operating efficiently to meet demand.
