New Delhi, Nov 1 (Agency) Even as fuel prices continue to burn the pocket of the common man, commercial cylinders of 19 kg in Delhi will now cost Rs 2000.50 in Delhi, effective from Monday. The prices of Liquefied Petroleum Gas (LPG) cooking gas were hiked by Rs 266, in one of the steepest hikes in LPG in seven years by the national oil marketing companies. In Mumbai, consumers will have to spend Rs 1,950 for a commercial gas cylinder of 19 kg, in Kolkata the same will cost Rs 2,073.50 and in Chennai, a 19 kg cylinder will be available for Rs 2,133. The surge in price of commercial LPG, coming amidst a surge in crude oil prices, is a matter of concern for restaurants, eateries and even many tea stalls, which constitute the largest user segment of the 19-kg cylinder.
Though in a relief to household consumers, there was no change in domestic LPG prices, but the breather could be a short-lived one, as this hike in LPG cylinders signals a possible rise in prices for domestic users. The two main factors that determine the prices of LPG cylinders in India are global crude oil prices and the dollar-rupee exchange rate as crude prices are denominated in US dollars. Brent crude prices are now hovering near 84 dollars per barrel, while the dollar-rupee exchange rate on Friday closed at 74.88 mark, putting pressure on LPG prices. Earlier, the prices of LPG cooking gas cylinders across all categories, including subsidised gas were hiked by Rs 15 per cylinder last month, the fourth straight increase in prices in less than two months. The increase in subsidised LPG price now has taken the cumulative rate hike since January 1 to Rs 205 per cylinder.