LPG Cylinder Price Revision: Potential Hike on May 1 Amid Global Market Volatility

The prices of LPG cylinders are under scrutiny as reports suggest a potential revision in the rates starting from May 1, although there has been no official confirmation on the new prices as yet. The last few months have seen revisions in domestic and commercial LPG prices, with domestic prices being revised once and commercial cooking gas rates adjusted twice.

A hike in LPG prices might be announced on May 1, given the pattern of oil companies typically revising prices at the start of the month and the ongoing volatility in global crude markets. This volatility, coupled with the government's efforts to implement stricter checks on the use and distribution of cooking gas, has led to discussions on new LPG cylinder rules, as reported by Mint earlier.

Historically, the Centre raised the price of a 14.2 kg domestic LPG cylinder by ₹60 in March. Since then, domestic LPG prices have remained stable across the country. In contrast, the price of a 19 kg commercial LPG cylinder was increased by ₹144 in March, followed by another hike of nearly ₹200 on April 1. This double hike has significantly impacted restaurants, eateries, and other businesses that heavily rely on cooking fuel for their operations.

The price hikes come on the heels of the conflict in West Asia, which began on February 28. The tensions between the US and Iran led to a blockade in the Strait of Hormuz, a key shipping route for energy supplies, thereby disrupting oil supplies. In response to this situation, the Centre has encouraged households and industries to shift towards alternative energy sources to ease the pressure on domestic fuel supplies and reduce dependence on imports.

This development is set against the backdrop of global crude oil prices surpassing $100 per barrel amid the West Asia crisis. In addition to LPG, other fuel prices have seen noticeable increases over the past few months. The government has raised the rates of industrial diesel, premium petrol, and jet fuel. For instance, the price of premium petrol was increased by ₹2.35 per litre from March 20, according to media reports.

Moreover, state-run oil marketing companies have sharply raised industrial diesel prices, with increases of over ₹22 per litre, as announced in March. The price of Aviation Turbine Fuel (ATF), or jet fuel, was more than doubled to a record ₹2.07 lakh per kilolitre in March. However, the government has passed an increase of 25% to domestic airlines in an effort to shield airfares.

As the country navigates these changes, consumers are advised to stay updated on the latest developments in LPG and fuel prices. The potential hike in LPG prices on May 1 could have significant implications for households and businesses, making it essential to explore alternative energy sources and adjust budgets accordingly.