Domestic and commercial LPG cylinder prices in India were little changed on Thursday despite continued volatility in global oil markets. Due to the ongoing war between the US and Iran, fuel supply disruptions caused the third increase in commercial LPG prices in India since the conflict began on April 28.
Commercial LPG cylinders, commonly used by hotels and restaurants, have become more expensive ₹993, pushing the price of a 19kg cylinder to an all-time high ₹3,071.50. Meanwhile, the price of 5kg LPG cylinders FTL (market rate) has skyrocketed from ₹549 to ₹810.50 per cylinder.
With this step up, the 5kg FTL cylinder is now only slightly underpriced ₹913 cost of a standard 14.2 kg domestic LPG cylinder used in households.
Domestic LPG prices have increased ₹60 per 14.2 kg cylinder on March 7.
No shortage of LPG, fuel supply stable: Govt
The government on Wednesday said it was making “all possible efforts” to ensure uninterrupted supply of LPG, crude oil and natural gas amid the ongoing crisis in West Asia, warning against panic buying at fuel retail outlets, as reported by ANI.
Sujata Sharma, Joint Secretary (Marketing & Oil Refinery) in the Ministry of Petroleum and Natural Gas said at an inter-ministerial briefing, “Our imports are affected by the crisis in West Asia, be it LPG, crude or natural gas. However, the Indian government is trying to ensure that domestic supply and domestic LPG consumers have 100% supply.”
She added that “70 percent of commercial supplies are secured” even as authorities continue efforts to maintain stable fuel availability across the country.
Regarding commercial and transport fuel supply, Sharma said that “about 15,900 tonnes of commercial LPG was sold in the last two days” while “876 tonnes of automotive LPG was sold by PSUs to OMCs”.
The official also said that “more than 1,20,000 5 kg bottles have been sold in the last two days” as part of efforts to improve the availability of cooking fuel.
The Government of India is trying to ensure that the domestic supply, the domestic consumers of LPG are assured of 100% supply.
S&P Global on Wednesday forecast India’s GDP growth to slow to 6.6 percent in the current fiscal year, down from an earlier estimate of 7.1 percent. The report also highlighted that energy and food security reforms will be critical for India to achieve its Viksit Bharat 2047 vision.
According to a joint CRISIL and S&P Global report titled India Forward, the country is currently facing external economic pressures due to power disruptions, rising oil and gas prices and currency volatility. The report recommended that India develop a comprehensive energy storage policy to build strategic reserves and enhance energy security.
