The Indian government on Friday raised the price of commercial liquefied petroleum gas (LPG) sold by state-owned companies by 993 Indian rupees (about €8.90, $10.50) in a fresh blow to restaurant, hotel and food shop owners.
Global energy prices have increased significantly since the start of the war in Iran and the closure of the Strait of Hormuz. The lack of progress in talks between the US and Iran means an early end to the blockade appears unlikely.
This is the third consecutive increase in the prices of 19 kg commercial LPG cylinders in India since the war began on February 28.
The price of LPG cylinder, commonly used in hotels and restaurants in the capital New Delhi, will now be 3,071.50 Indian rupees.
This will increase the cost of restaurants, hotels and other food outlets that depend on industrial LPG for everyday operations.
There are concerns that the increases could impact the cost of food and meals, with businesses passing on some of the burden of increased prices to consumers.
New LPG rules come into force
Meanwhile, the price of domestic LPG remains unchanged. However, from today, a new framework of rules will come into effect, changing the way Indian households book and receive cylinders.
Rules have been finalized by the country’s three major state-owned oil companies – Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum – to curb hoarding, black marketing and illegal transfer of subsidized gas.
Here are the details of what the new rules include:
- The government is identifying households that receive both LPG and piped natural gas, a practice now banned
- The minimum gap between LPG orders has been increased from 21 to 25 days in urban areas and 45 days in rural areas.
- Cylinders booked before that deadline will be automatically blocked
- Consumers will now be sent a PIN while ordering which they will have to show at the time of delivery