The Indian government on Friday raised the price of commercial liquefied petroleum gas (LPG) sold by state-owned firms by 993 rupees (about €8.90, $10.50). A 19-kg commercial cylinder commonly used by restaurants, hotels and food vendors will now cost 3,071.50 rupees in New Delhi. This marks the third straight increase for the 19-kg commercial cylinder since the conflict in Iran began on February 28 and disruptions to shipping through the Strait of Hormuz followed.
Officials and industry watchers say the hike reflects higher global energy costs tied to the conflict and that, with limited diplomatic progress, the increases are unlikely to be rolled back quickly. Businesses that depend on industrial LPG warn they may need to absorb part of the added expense or pass it on to customers, potentially pushing up prices for meals and other food services.
Prices for household LPG cylinders remain unchanged, but a new booking and delivery framework for domestic cylinders takes effect today. The rules, issued by India’s three major state refiners—Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum—aim to prevent hoarding, black marketing and illegal diversion of subsidized gas. Major elements include:
– Identification and prohibition of households receiving both LPG and piped natural gas (PNG).
– Extension of the minimum interval between LPG orders from 21 to 25 days in urban areas and to 45 days in rural areas.
– Automatic blocking of orders placed before the permitted interval.
– Issuance of a PIN at order time that must be presented at delivery.
Taken together, higher commercial LPG costs and tighter domestic distribution rules are intended to safeguard subsidized supplies for genuine household use, but they may raise operating pressures on small food businesses and affect short-term fuel and food price dynamics.