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With the beginning of the month of November, the activity in the energy and fuel market has intensified. The new rates have become fully effective on November 2 after the review of LPG cylinders by the country’s major oil marketing companies (OMCs) like Indian Oil (IOCL), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) on the first of the month. Amidst the upcoming season of festivals, weddings and the onset of winter, the kitchen of every home and hotel-restaurant businessmen were keeping an eye on whether this time any additional burden has been put on the pockets of the general public in the prices of gas cylinders. According to the official rates released in the morning, while on one hand the price of 19 kg blue commercial gas cylinder has been increased by ₹ 10 per cylinder, on the other hand, the biggest relief for common families and housewives is that the prices of 14.2 kg red domestic LPG cylinder have been kept completely stable. In such a situation, it becomes very important to know how much money you will have to pay to fill a gas cylinder today in the metropolitan cities of the country and in the major cities of states like Uttar Pradesh, Bihar and Rajasthan.
The beginning of November has brought an increase in costs for businessmen running hotels, dhabas, catering and small food stalls. Government oil companies have increased the price of 19 kg commercial LPG cylinder by ₹ 10. After this amendment, the price of 19 kg cylinder in the national capital Delhi has increased from ₹ 2,810 to ₹ 2,820. In the financial capital Mumbai, its price has increased to the level of about ₹ 2,774.50. At the same time, the price of commercial cylinder in the eastern metropolitan city of Kolkata has gone up to around ₹ 2,964. Talking about South India, the highest increase of about ₹ 11.50 has been recorded in Chennai, due to which commercial LPG cylinder is being sold there in the range of around ₹ 2,987 to ₹ 2,990. It is noteworthy that last month also on October 1, companies had increased the price of commercial gas. Due to increase in prices for the second consecutive month, there has been a direct increase in the operating expenses of the food and beverage sector, the effect of which can be seen on the bills of common citizens who eat out or have breakfast.
Keeping the household budget of middle class families safe in this festive season, oil companies have not made any change in the prices of 14.2 kg domestic LPG cylinders. In Delhi, a 14.2 kg cylinder is being made available to the general domestic consumer at the old rate of ₹ 942. The domestic LPG cylinder rate in Mumbai is around ₹942.50. In Kolkata this rate remains around ₹ 969, while in Chennai the domestic gas cylinder is available at ₹ 958.50. There is a difference of a few rupees in different cities due to local taxes and transportation costs, but housewives have heaved a sigh of relief as there has been no change in the basic rate. Daily consumption of LPG naturally increases during festive season and winter season, hence stable prices prevent the monthly financial balance of the common man from getting disturbed.
LPG prices vary in different tier-2 and tier-3 cities of the country depending on the local VAT and freight charges applicable in the states. In Lucknow, the capital of Uttar Pradesh, the 14.2 kg domestic cylinder is stable around ₹ 980 to ₹ 982, while the 19 kg commercial cylinder here has crossed ₹ 2,935. In Noida and Ghaziabad adjacent to Delhi, domestic cylinder is available in the range of ₹ 940, while commercial cylinder is priced around ₹ 2,815. Due to geographical distance and additional transportation cost in Patna, Bihar, the price of domestic cylinder remains around ₹ 1,001 and commercial cylinder is running above ₹ 3,050. Domestic cylinder is reaching consumers at the rate of around ₹ 946.50 in Jaipur, Rajasthan and at around ₹ 948.50 in Bhopal, Madhya Pradesh. According to local dealers, invoices are being issued as per these revised rates to customers who made bookings on November 2.
India imports more than 50 percent of its LPG requirements from Saudi Arabia and Gulf countries. LPG prices in the domestic market are determined by the contract price (CP) decided by Saudi Aramco in the international market and the exchange rate of the Indian Rupee against the US Dollar. Over the past few weeks, international propane and butane benchmark prices have been witnessing strengthening due to geopolitical uncertainties in the global energy market and rising winter demand. Besides, the strength of the dollar also plays an important role in the import cost. This is why oil marketing companies have made a nominal increase of ₹10 in the commercial category to bridge the international cost gap, while keeping domestic consumers stable under subsidies and government protection mechanisms to protect them from inflationary shocks.
The scope of relief is even wider for the connection holders of the Pradhan Mantri Ujjwala Yojana (PMUY) given by the Central Government to women from lower income groups. Under the Ujjwala scheme, a direct financial subsidy of ₹300 per cylinder on up to 12 cylinders (14.2 kg) per year is sent directly to the beneficiary’s bank account through Direct Benefit Transfer (DBT) by the government. This simply means that while a typical consumer pays ₹942 in Delhi, the effective cost of the cylinder for eligible beneficiaries of the Ujjwala scheme comes to just around ₹642 after subsidy adjustment. This scheme is proving to be a milestone in keeping clean energy affordable in rural and semi-urban areas, so that rural women can live free from wood and cow dung smoke.
As soon as the month of November arrives, the huge season of wedding programs and auspicious events starts across the country. At such times, the consumption of 19 kg commercial cylinders in halwais, tent caterers, big hotels and roadside dhabas increases by double to three times as compared to normal months. An increase of ₹10 per cylinder may not seem huge, but for establishments consuming 50 to 100 cylinders daily, it adds thousands of rupees of extra expense to the monthly budget. Representatives associated with the National Restaurant Association believe that the continuous increase in gas prices amid the current prices of edible oils, vegetables and groceries is making it challenging to control menu prices. If this trend continues in the coming months, wedding catering packages and dine-in bills at restaurants may see a jump of 3 to 5 percent.
The 5 kg ‘Free Trade LPG’ (FTL) or ‘Chhotu’ cylinder is the most popular option for students living alone in metros, working youth and migrant labourers. As on November 2, the price of a 5 kg refill is stable at around ₹782 in Delhi, while the total cost for taking a new connection comes to around ₹1,903. Consumers can now buy this 5 kg cylinder immediately from their nearest petrol pump or gas agency by just showing Aadhar card without any address proof. Apart from this, Indian Oil’s ‘Indane’, Bharat Gas and HP Gas have activated WhatsApp and missed call services for booking of normal 14.2 kg and 19 kg cylinders. Customers can complete the booking and digital payment process within 2 minutes by sending ‘REFILL’ to the company’s WhatsApp bot from their registered mobile number or by giving a missed call, thereby ensuring safe delivery of the cylinder directly to their address.