In one of the sharpest hike in liquefied petroleum gas prices in seven years, National Oil Marketing Companies have increased the cost of commercial 19 kg LPG cylinders by over Rs 266 with effect from November 1.
While the upward revision is not entirely unusual amid a spurt in crude oil prices, the volume will indeed be worrying for restaurants, eateries and even many tea stalls, which sell most of the 19-kg cylinder. Large users constitute the segment. This is bound to make matters worse, as their customers are grappling with the cascading effect of rising petrol and diesel prices.
After the increase, a cylinder of 19 kg will cost Rs 2,000.50, as against Rs 1,734 in Delhi; ₹1,950 (Rs.1,683) in Mumbai; ₹2,073.50 (Rs.1,803) in Kolkata; ₹2,133 (Rs 1,865) in Chennai; and ₹2,175 (Rs.1,905) in Hyderabad.
The increase has been highest in Hyderabad and Kolkata, varying from ₹266-270 in five cities. Across the country, this is the second highest since January 1, 2014, when a 19 kg cylinder became costlier by ₹353.50 (in Delhi). In the last seven years, the price has increased by Rs 190 per cylinder, touching Rs 1,539 (₹ 1,349) on February 1 this year.
Capacity enough to make eating out or even a cuppa expensive, the latest revision could be a harbinger for a sharp increase in the price of domestic 14.2kg refills. Sources say oil marketing companies may wait till Diwali, which is a few days away, to effect an increase in the cost of household refills.
Telangana LPG Distributors Association President K. Jagan Mohan Reddy said with reports of under-recoveries on LPG by oil companies – Indian Oil, Bharat Petroleum and Hindustan Petroleum, a hike in domestic cooking gas price appears inevitable.
In a related development, the government has increased the commission of LPG distributors on each commercial cylinder from ₹17 to ₹121 to ₹138. This is also included in the latest hike in price. According to Sri Reddy, the commission has been increased keeping in view the higher investment the distributors will have to make on the purchase of the stock.
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