Why did commercial LPG prices rise in Hyderabad? Rates jump by Rs 214 per cylinder
The Ministry of Petroleum and Natural Gas reiterated that the current hike does not apply to domestic LPG cylinders.
By Newsmeter Network
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Hyderabad: Oil Marketing Companies (OMCs) have announced a fresh price hike for 19 kg commercial Liquefied Petroleum Gas (LPG) cylinders, effective today, April 1.
Total cost at Rs 2,321 per cylinder
While the revision impacts all major metros, Hyderabad has seen a significant jump, with prices increasing by Rs 214 per cylinder.
According to reports, the total cost of a commercial cylinder in Hyderabad now stands at approximately Rs 2,321.
No price hike on domestic LPG
The Ministry of Petroleum and Natural Gas reiterated that the current hike does not apply to domestic LPG cylinders. Prices for the 14.2 kg cylinders used in households remain stable.
Volatile global market
According to a statement from the Ministry of Petroleum and Natural Gas, this price revision is a direct result of fluctuating global energy market trends and the rising costs of imports.
The Ministry clarified that while domestic LPG (14.2 kg) prices remain shielded to protect household budgets, the commercial rates, used primarily by restaurants, hotels and industries, are adjusted monthly based on international benchmarks.
What did the govt say?
The official communication from the Ministry highlights several key factors contributing to the current increase:
1. Surge in International LPG Benchmarks
The Ministry noted that India imports a significant portion of its LPG requirements. The price of commercial cylinders is closely linked to the Saudi CP (Contract Price), which has seen an upward trend due to increased global demand and tightening supply in the international market.
2. Foreign Exchange Fluctuations
The Ministry highlighted the impact of the US Dollar on the Indian Rupee (USD-INR) exchange rate. Since LPG is purchased in dollars on the international market, any depreciation of the Rupee increases the landed cost of the product, necessitating a price adjustment at the retail level.
3. Rising Freight and Logistics Costs
Global geopolitical tensions have led to an increase in shipping and insurance premiums for fuel transport. The Ministry indicated that these ‘secondary costs’ have added pressure on Oil Marketing Companies, leading to the marginal increase in the commercial cylinder rates to maintain operational viability.
