Commercial LPG cylinder prices have increased from June 1, adding fresh financial pressure on businesses, while domestic LPG rates remain unchanged
New Delhi: Commercial establishments across India are facing another increase in operational expenses after oil marketing companies raised the price of 19-kg commercial LPG cylinders effective June 1. The latest revision has pushed commercial cylinder prices higher by up to Rs 53.50 in some cities, creating additional cost burdens for hotels, restaurants, catering businesses, and industrial consumers.
The nationwide revision comes amid ongoing concerns over energy costs and fuel price volatility. While commercial LPG users will have to absorb the higher rates, domestic consumers have received relief as there has been no change in household LPG cylinder prices.
According to the revised rates, the retail price of a 19-kg commercial LPG cylinder in Delhi has increased by Rs 42, taking the new price to Rs 3,113.50. The latest adjustment marks another significant rise in commercial fuel costs and is expected to impact sectors heavily dependent on LPG for daily operations.
"The revised commercial LPG rates will further increase operational expenses for hotels, restaurants, and industrial establishments across the country."
Bengaluru Commercial LPG Price Crosses Rs 3,198
Bengaluru has witnessed one of the notable increases in commercial LPG prices. The cost of a 19-kg commercial cylinder in the city has gone up by Rs 46, taking the new retail price to Rs 3,198.
The latest revision follows a sharp increase implemented in May, when commercial LPG cylinder prices surged significantly. After the previous revision, the price of a commercial cylinder in Bengaluru had climbed to Rs 3,152, one of the highest levels recorded in recent years.
Currently, domestic LPG consumers in Bengaluru continue to pay Rs 915.50 per cylinder, with no fresh revision announced for household users.
The repeated increases in commercial LPG rates are likely to impact food service businesses, hotels, bakeries, restaurants, and small industries that rely heavily on LPG as a primary energy source.
The latest LPG price revision has affected major metropolitan cities, with commercial users witnessing varied increases depending on location.
In Kolkata, the price of a 19-kg commercial LPG cylinder has risen by Rs 53.50, pushing the retail rate to Rs 3,255.50. Meanwhile, the price of 5-kg Free Trade LPG (FTL) cylinders has also been revised upward by Rs 11. The new retail price of a 5-kg FTL cylinder in Delhi now stands at Rs 821.50.
Despite the increase in commercial LPG rates, domestic LPG cylinder prices used by households remain unchanged, offering some relief to millions of consumers across the country.
Energy Security Measures Strengthened Amid LPG Demand Growth
Amid the latest price revision, the government has reiterated its focus on maintaining national energy security and ensuring the uninterrupted availability of petroleum products across the country.
Sujata Sharma, Joint Secretary in the Ministry of Energy, stated that Oil Marketing Companies (OMCs) have been directed to maintain sufficient LPG inventory levels to meet demand and prevent supply disruptions.
"Oil Marketing Companies have been instructed to maintain LPG stocks sufficient for at least 30 days to ensure uninterrupted supply across the country."
According to government officials, India's stock position for petrol, diesel, and LPG remains comfortable, while refineries are operating at full production capacity. Domestic LPG production has reportedly reached a record level of approximately 90 DMT per day.
Government Intensifies Crackdown on Fuel Diversion and Illegal LPG Sales
Authorities have also stepped up enforcement measures against fuel smuggling and unauthorised sales of petroleum products.
Officials revealed that over the last four days, around 6,500 inspections and raids were conducted at LPG distribution centres nationwide. The operation resulted in the registration of five FIRs and the arrest of two individuals involved in alleged violations.
In addition, inspections were carried out at more than 900 petrol stations across the country. During these checks, authorities reportedly seized 417 litres of petrol and 75,715 litres of diesel. Enforcement agencies also registered 12 FIRs and arrested 15 individuals in connection with fuel-related irregularities.
Government data indicates that India currently records a daily LPG demand of approximately 72,000 metric tons. Domestic refineries are producing between 50,000 and 52,000 metric tons per day, with the remaining requirement being met through efficient supply-chain management and inventory planning.
Officials further noted that improved logistics and distribution systems have reduced the LPG backlog period to approximately 4.5 days, helping maintain stable supplies despite growing consumption.
As commercial LPG prices continue to rise, industry stakeholders are expected to closely monitor future revisions, especially as fuel costs remain a critical factor influencing business operating expenses across multiple sectors.
