Heat off of tea stalls, eateries as commercial LPG prices slashed

COVID 19 Updates Heat off of tea stalls, eateries as commercial LPG prices slashed

The price of commercial LPG refills meant for tea stalls, restaurants and food caterers as well as for industrial applications has been reduced by more than ₹180 per 19-kg cylinder.

State-owned oil marketing corporations Indian Oil, Bharat Petroleum and Hindustan Petroleum announced the change effective July 1, but left the price of the 14.2-kg domestic LPG refill untouched.

Commercial LPG prices are usually revised on a monthly basis to factor in changes in the international crude oil prices. The retail prices of the cylinders vary across the country on account of the transportation charges, from the bottling plants.

In Hyderabad, the price of 19-kg cylinder now is ₹2,242, a reduction of ₹183.50 from last month’s ₹2,425.50. Among major metros, the quantum of reduction was the highest in Delhi at ₹198. A 19-kg cylinder in the national capital now costs ₹2,021, while in Mumbai, the reduction has been ₹190.50 to touch ₹1,981 (it was ₹2,171.50 earlier).

The price of the refill in Kolkata has been reduced by ₹182 and will now cost ₹2,140 instead of ₹2,322 earlier. In Chennai, the price has come down by ₹187 to ₹2,186. The earlier price per refill was ₹2,373.

With soaring inflation pushing up prices of various commodities, the reduction in LPG refill cost is bound to bring some relief to commercial establishments. They are, however, unlikely to pass the benefit to the customers since the price of the 19-kg cylinder has been mostly on an upswing since November.

Security deposit up

Friday’s reduction comes close on the heels of the oil companies effecting an increase ranging from ₹600-700 in security deposit for new commercial LPG (19 kg and 47.5 kg) cylinder. The increase in the deposit, on account of higher steel prices, has consequentially led to an upward revision in penal and tariff rates that are to be paid in the event of the customer losing or damaging the equipment.

The security deposit rates for domestic LPG connections were also increased earlier last month. Sources among cooking gas distributors say increase in the security deposit on commercial cylinders are unlikely to have an impact except on tea stalls and small eateries. Many distributors, for the sake of doing more LPG volume sales, pay the security deposit for bulk consumers, a distributor said.

Crime Today News | Hyderabad


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