The price of a 14.2-kg domestic LPG cylinder was hiked due to geopolitical disruptions to fuel supply. This increase has now been compounded by further price adjustments made by oil marketing companies.
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 kg gas cylinder has risen from 853 rupees to 913 rupees. New rates for LPG cylinders are set at 912.50 rupees in Mumbai, 939 rupees in Kolkata, and 928.50 rupees in Chennai.
Additionally, the rates of commercial LPG gas cylinders have been increased by 115 rupees. This has created significant challenges for the hospitality sector, particularly in cities like Mumbai, Bengaluru, and Chennai.
Impact on the Hospitality Sector
An acute shortage of commercial LPG cylinders is disrupting operations in the hospitality sector. Reports indicate that at least 20 percent of the hotels and restaurants in Mumbai have had to shut down temporarily due to this shortage. The situation has raised alarms among industry stakeholders.
AHAR – the Indian Hotels and Restaurants Association, has expressed concern, 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 within the industry as they navigate these challenges.
Government Response
In response to the ongoing crisis, the Indian government has increased the LPG booking period from 21 days to 25 days to curb hoarding. Furthermore, the government has invoked the Essential Commodities Act to ensure the supply of natural gas is prioritized.
Officials have stated that the supply of natural gas must be treated as a priority allocation and shall be maintained subject to operational availability to one hundred percent of their average past six-month average gas consumption.
Looking Ahead
Details remain unconfirmed regarding the exact impact of ongoing geopolitical conflicts on future gas cylinder prices. Observers are closely monitoring the situation as it continues to evolve, with potential implications for both consumers and businesses across the country.
