Labour Day jolt: Commercial LPG prices surge, new booking curbs kick in

Businesses and bulk users woke up to a sharp spike in fuel costs on Labour Day, with state-run oil marketing companies raising prices of commercial LPG cylinders by an average of Rs 993 — a move that came without any prior public discussion and is expected to ripple through food and service sectors.

In Delhi, a 19 kg commercial LPG cylinder now costs Rs 3,071.50, up from Rs 2,078.50, while in Mumbai the price has climbed to Rs 3,024 from Rs 2,031. This is the third increase since late February, when geopolitical tensions in West Asia began driving up crude oil prices. Restaurants, caterers and small businesses are likely to pass on the burden, potentially pushing up prices of meals and delivery services.

The price shock coincides with tighter rules for LPG access. From 1 May, new booking restrictions have come into force: urban consumers must now wait 25 days between cylinder bookings, up from 21 days, while the interval in rural areas has been extended to as much as 45 days.

In addition, a Delivery Authentication Code (DAC) system has been made mandatory. Consumers will receive a one-time password on their registered mobile number when booking a refill, which must be provided at delivery, replacing earlier verification methods such as physical documents.

The twin moves — higher commercial prices and stricter booking norms — have drawn attention for their timing, landing on Labour Day and affecting both businesses and households dependent on regular fuel access.

Even as these changes take effect, oil companies have kept several key fuel prices unchanged. In a statement issued early on Friday, IndianOil said there has been no revision in aviation turbine fuel (ATF) for domestic airlines, nor in the retail rates of petrol, diesel and subsidised LPG cylinders.

According to the company, about 80 per cent of petroleum products have seen no price change, around 4 per cent have become cheaper, and 16 per cent — mainly industrial fuels — have recorded increases in line with global benchmarks.

ATF prices, usually revised at the start of each month, were left untouched as companies opted to absorb rising input costs. Household LPG cylinders (14.2 kg), used by roughly 330 million consumers, also remain at existing rates, as does kerosene supplied through the public distribution system.

Despite holding retail prices steady, reports indicate that oil marketing companies are facing mounting financial strain as they continue to sell fuels at unchanged rates while procuring crude at elevated prices exceeding $120 per barrel. Industry sources suggest they may seek government support to offset growing under-recoveries.

Selective price increases, however, have been implemented for premium petrol, bulk diesel and ATF used in international aviation, aligning those segments more closely with global trends.

The developments underscore a calibrated but uneven pricing strategy — shielding household consumers on paper while shifting a growing share of the burden onto commercial users and tightening access through new booking constraints.

With PTI inputs