Indian oil companies increased the price of commercial LPG cylinders effective June 1, 2024 [1], [8].
This price adjustment affects businesses across major urban centers and coincides with a new government mandate to secure fuel supplies. The shift places additional financial pressure on commercial kitchens and small businesses while shielding residential consumers from price volatility.
In Delhi, the price of a 19-kg commercial LPG cylinder rose by ₹42 [1], bringing the new cost to ₹3,113.50 [2]. Other reports indicated a higher increase of ₹111 [7], though most sources cite the ₹42 figure [1]. In Kolkata, the increase was ₹53.50 [4], resulting in a new price of ₹3,255.50 [3].
Smaller commercial options also saw adjustments. In Delhi, the price of a five-kg Free Trade LPG cylinder increased by ₹11 [5]. These changes were implemented across several major cities, including Mumbai, Noida, Bengaluru, Chennai, and Gurugram [1], [2].
Despite the rise in commercial costs, domestic LPG cylinder rates remained unchanged [6]. This divergence suggests a policy focus on maintaining affordable energy for households while allowing commercial rates to reflect current market conditions [1], [3].
Parallel to the pricing changes, the Indian government directed oil firms to maintain a 30-day reserve of LPG [9]. This directive aims to ensure an uninterrupted supply of fuel and improve overall energy security [3]. The government said the reserve is necessary to prevent shortages during market fluctuations [3].
“Domestic LPG cylinder rates remained unchanged.”
The decision to hike commercial fuel prices while freezing domestic rates indicates a strategic effort by the Indian government to protect residential consumers from inflation. Simultaneously, the 30-day reserve mandate signals a shift toward greater energy autonomy and a desire to mitigate the impact of global supply chain disruptions on the domestic market.
