Commercial LPG Cylinder Prices Surge by Rs 993 Amid West Asia Tensions

The price of commercial liquefied petroleum gas (LPG) cylinders in India has seen a substantial hike of Rs 993, effective from Friday. This increase is a direct consequence of soaring global energy prices exacerbated by the ongoing conflict in West Asia, as reported by ANI. With this latest adjustment, the cost of a 19-kg commercial LPG cylinder is now pegged at Rs 3,071.5 in Delhi, while in Mumbai it stands at Rs 3,024.

This hike follows a previous increase of Rs 195.5 for commercial cylinders on April 1. Notably, the prices for domestic LPG cylinders remained unchanged, with the 14.2 kg cylinder still costing Rs 913 in the national capital. The pricing strategy for LPG and Aviation Turbine Fuel is managed by state-owned entities such as Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum, which evaluate prices on the first day of each month based on global benchmarks and currency exchange rates.

The backdrop of this price surge is the disruption in energy supplies to India since the conflict in West Asia intensified on February 28. Iran’s blockade of the Strait of Hormuz, a crucial passage through which approximately 20% of the world’s petroleum liquids are transported, has significantly impacted LPG supplies to India. The country relies on imports for about 88% of its crude oil and nearly half of its natural gas, with a substantial portion delivered via this strategic maritime route.

Despite the increase in LPG prices, the Indian Oil Corporation has opted to maintain current petrol and diesel prices, a decision aimed at shielding domestic consumers from the volatility of international fuel costs. As a result, retail prices for petrol and diesel remain stable, offering some respite to consumers who comprise nearly 90% of the market.

This situation reflects the broader implications of geopolitical tensions on energy prices in India, prompting concerns about inflation and the economic impact on households reliant on commercial LPG for cooking and other uses. As global energy dynamics continue to evolve, Indian consumers may need to prepare for further fluctuations in fuel and energy costs in the near future.

Source: scroll.in