Commercial LPG prices across India have been increased by Rs 42 to Rs 53.50 per cylinder from Monday. The price hike comes amid concerns over fuel supply security and efforts to strengthen LPG reserves following recent disruptions linked to the West Asia conflict.
The price of a 19-kg commercial LPG cylinder in Delhi has been raised by Rs 42, taking the retail price to Rs 3,113.50. In Kolkata, the increase is steeper at Rs 53.50, pushing the price of a commercial cylinder to Rs 3,255.50, according to news agency ANI.
The price revision comes into effect from June 1 and applies only to commercial LPG cylinders used by hotels, restaurants and businesses. There has been no change in the price of domestic cooking gas cylinders.
The price of a 5-kg Free Trade LPG (FTL) cylinder has been increased by Rs 11 and will now cost Rs 821.50 in Delhi.
The latest hike comes at a time when the Centre is reviewing India's fuel security strategy after supply disruptions caused by tensions in West Asia highlighted the country's dependence on imported energy.
Sujata Sharma, joint secretary in the ministry of petroleum and natural gas on Friday said that the government had directed state-run oil marketing companies to work towards maintaining LPG reserves equivalent to at least 30 days of demand.
"Regarding strategic reserves, we are working on the strategic reserves also. We have asked the oil marketing companies to work out that the LPG reserve should be a minimum of 30 days with them and they are working on it," Sharma said during an inter-ministerial briefing.
The move follows disruptions in supplies from the Gulf region, which accounts for around 90 per cent of India's LPG imports, 65 per cent of natural gas imports and about 40 per cent of crude oil imports.
The government, however, maintained that there is no shortage of fuel in the country.
"We have sufficient stock of petrol, diesel, LPG, natural gas and crude inventories are tied up. All our refineries are operating at optimum levels and LPG production is at an all-time high," Sharma said.
She added that domestic refineries are currently producing around 50,000-52,000 tonnes of LPG daily against a demand of nearly 72,000 tonnes, with the remaining requirement being met through imports.
The government has also intensified enforcement measures to prevent hoarding and black marketing of fuel. According to Sharma, more than 6,500 raids have been conducted on LPG operations in recent days, resulting in multiple FIRs and arrests.
Officials said the Centre is also exploring the expansion of crude oil storage facilities while advising states and Union Territories to remain vigilant against fuel hoarding amid heightened demand in several regions.
India's three state-run fuel retailers - Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) have been tasked with preparing plans for additional LPG storage infrastructure to improve preparedness against future supply shocks.
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