Oil marketing companies on Saturday raised the commercial LPG cylinder prices, which will be effective from today onwards.
Sources report that the price of a 19 kg commercial LPG cylinder increased by Rs 48.50. This increase will impact businesses dependent on these cylinders. A 19 kg LPG cylinder now sells for Rs 1,740, up from the previous price of Rs 1,691.50 in Delhi.
This price also covers the Rs 12 increase in the prices of 5 kg Free Trade LPG cylinders, which in turn hits restaurants and hotels or all such commercial establishments using those for daily operations.
Oil marketing companies had raised the rate of 19 kg commercial LPG cylinders by Rs 39 last month on September 1. After that hike, the retail price had reached Rs 1,691.50 in Delhi. Businesses will now have to bear higher prices due to this increase. However, despite the hike in the price of commercial LPG, prices of domestic LPG cylinders have remained unchanged. This is some cushion for households as they will not bear the load of increased costs on cooking gas.
The revised prices will be effective across the country. This move will have a bearing on the cost structure of many of those businesses which use LPG for cooking and operation purposes. Thus, the operating cost may shoot up for the affected sectors. This may lead to a greater price for the end consumer in different sectors.
The price rise will now necessitate a budgetary adjustment on the part of businesses to absorb the increase. Many restaurants and eating places may pass on these costs to customers. This can affect other goods’ pricing, too, since many businesses use LPG for cooking and heating.
To put it briefly, this increasing price of commercial cylinders of LPG should be news of importance to many businesses, showing an energy market that is always troubled. The increased prices will involve adjustment to changes in businesses, and consumers also. Over the next several months, it will be clearer what the long-term implications are for pricing and operating costs.
ANI