The Indian government on Friday sharply increased the price of commercial liquefied petroleum gas (LPG) sold by state-owned companies by 993 rupees (~€8.90, $10.50), a move affecting restaurants, hotels and food vendors. In New Delhi a 19-kg commercial cylinder — commonly used by businesses — will now cost 3,071.50 rupees. This is the third consecutive hike for the 19-kg commercial cylinder since the war in Iran began on February 28 and shipping through the Strait of Hormuz became disrupted.
Officials and industry observers say higher global energy prices driven by the conflict and limited progress in diplomatic talks mean the increases are unlikely to be reversed quickly. Businesses reliant on industrial LPG fear they will absorb some of the extra cost or pass it on to customers, potentially raising food and dining prices.
Domestic LPG prices for household cylinders remain unchanged. However, from today a new set of rules governing booking and delivery of domestic cylinders comes into effect, designed by the three major state refiners — Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum — to curb hoarding, black marketing and illegal diversion of subsidized gas.
Key points of the new framework:
– Households receiving both LPG and piped natural gas (PNG) will be identified; receiving both is now banned.
– The minimum gap between LPG orders is extended from 21 to 25 days in urban areas, and to 45 days in rural areas.
– Orders placed earlier than the allowed timeframe will be automatically blocked.
– Consumers will receive a PIN when making an order that must be shown at delivery.
The combined effect of higher commercial LPG costs and tightened distribution rules for domestic cylinders aims to protect subsidized supplies for genuine household use, but may increase operating pressures on small food businesses and change short-term market dynamics for fuel and food prices.