Commercial LPG Cylinders Get Dearer: Rs 8.50 Hike; City-Wise New Rates Inside

Starting August 1, 2024, oil marketing companies (OMCs) have raised the prices of 19 kg commercial LPG cylinders by Rs 8.50. The new prices are:

• Delhi: Rs 1652.50, up from Rs 1646 (an increase of Rs 6.50)
• Kolkata: Rs 1764.50, up from Rs 1756 (an increase of Rs 8.50)
• Mumbai: Rs 1605, up from Rs 1598 (an increase of Rs 7)
• Chennai: Rs 1817, up from Rs 1809.50 (an increase of Rs 7.50)

This price adjustment comes after a previous reduction on July 1, 2024, where the cost of 19 kg commercial LPG cylinders was decreased by Rs 30.

In contrast, the prices for the 14.2 kg domestic LPG cylinders have remained stable. The current prices are:

• Delhi: Rs 803
• Kolkata: Rs 829
• Mumbai: Rs 802.50
• Chennai: Rs 818.50

This stability follows a series of reductions in domestic LPG cylinder prices over the past year.

On August 30, 2023, there was a relief of Rs 200, bringing the LPG price down to Rs 903. Another reduction of Rs 100 was implemented on March 9, 2024.

The recent price hike in commercial LPG cylinders coincides with the Indian government's Union Budget announcement for the financial year 2024-25.

The budget estimates total receipts (excluding borrowings) to be Rs 32.07 lakh crore, with net tax receipts projected at Rs 25.83 lakh crore. The fiscal deficit is estimated at 4.9% of GDP.

Oil companies, which play a major role in contributing to government revenue, are directly impacted by these budgetary decisions.