Domestic LPG cylinder prices suddenly increase by Rs 60, commercial up Rs 115 amid Iran war

Oil companies have increased the price of LPG cylinders. The price of a 14.2 kg domestic cylinder, used for cooking, has been increased after almost a year, becoming costlier by ₹60. Commercial gas cylinder prices have also increased. The price of a 19 kg cylinder has increased by ₹115. The new rates have been updated on the IOCL (Indian Oil) website and will be effective immediately.

The price of a 14.2 kg domestic LPG cylinder has been increased by ₹60. In Delhi, the price of a 14.2 kg domestic LPG cylinder has increased from ₹853 to ₹913. In Kolkata, the price has increased from ₹879 to ₹939, while in Chennai, it has increased from ₹868.50 to ₹928.50.

Similarly, the price of a 19 kg commercial LPG cylinder has also increased by ₹115. The price of a 19 kg commercial LPG cylinder has now risen to ₹1,883 in Delhi and ₹1,835 in Mumbai. In Kolkata, the price has risen from ₹1,875.50 to ₹1,990. In Chennai, it has risen from ₹1,929 to ₹2,043.50. The increase in commercial gas prices will impact the business of hotels, restaurants, and food stores.

Did the price hike occur due to tensions in the Middle East?

Commercial and kitchen LPG prices are often increased on the first of every month, but this time, that wasn't the case. The price hike was announced on March 7th. This increase comes at a time of significant tension in the Middle East and disruptions to gas supplies.

The Strait of Hormuz, through which India imports 80 to 90 percent of its gas, is also closed. In such a situation, the sudden increase in LPG prices is being seen as a precautionary measure by the government to maintain LPG reserves and prevent any supply disruptions.

How many days' reserves does India have?

Some reports also claim that India has only 12 days' worth of gas reserves. The Indian government has also directed oil companies to maximize LPG production to avoid supply disruptions. The country has approximately 332 million active LPG users.

Will prices rise further?

Meanwhile, Qatar's Energy Minister (Saad Al-Kaabi) has warned that if the war continues for a long time, it could lead to a major global crisis. Furthermore, crude oil prices could see a record surge, reaching $150 per barrel. This means that gas supplies could also be disrupted, and the possibility of further price increases could increase.