5-kg ‘Chhotu’ cylinder costlier by ₹11; domestic cooking gas rates unchanged

Commercial LPG cylinder prices were hiked by up to ₹53.50 on Saturday as state-owned oil marketing companies revised rates for the month of June. The increase, effective from June 1, excludes domestic cooking gas cylinders which remain at previous levels.

In the national capital, a 19-kg commercial cylinder now costs ₹3,113.50 – a rise of ₹42 from ₹3,071.50. Kolkata saw the steepest jump of ₹53.50, pushing the price to ₹3,255.50. Mumbai and Chennai recorded increases of ₹43.50 and ₹46 respectively, with new prices at ₹3,067.50 and ₹3,283.

Restaurants, Hotels Brace for Impact

Industry observers say the latest revision will add to operating costs for eateries, roadside dhabas, and catering businesses that rely heavily on commercial LPG. Many such establishments are expected to pass on the burden to customers, potentially pushing menu prices higher over the coming weeks.

“For a small restaurant using four to five cylinders a month, the additional outgo could be around ₹200-250,” an industry source familiar with the matter said. “In a tight-margin business, that eventually hits the consumer’s plate.”

5-kg ‘Chhotu’ Cylinder Also Costlier

The price of the 5-kg Free Trade LPG (FTL) cylinder, popularly known as the “Chhotu” cylinder, has been increased by ₹11 to ₹821.50 from ₹810.50. Unlike domestic cylinders, FTL cylinders do not require address proof, making them a preferred choice among migrant workers, college students in rented accommodations, and small roadside shopkeepers.

The 5-kg domestic LPG cylinder, however, continues to be priced at ₹339 – unchanged from previous months.

Domestic Cooking Gas Rates Unchanged

In a relief to households, the price of the 14.2-kg domestic LPG cylinder has not been altered. The unchanged status follows a series of reductions in recent months, though commercial users have not been as fortunate. Officials confirmed that the government continues to subsidise domestic LPG under the Pradhan Mantri Ujjwala Yojana, while commercial cylinders are priced at market rates.

What is LPG and How Much Does India Need It?

Liquefied Petroleum Gas, or LPG, is primarily a mix of propane and butane, produced as a by-product during petroleum refining and natural gas processing – much like buttermilk is produced while making ghee from curd. India imports a significant portion of its LPG requirements to meet domestic and commercial demand. According to the Petroleum Planning and Analysis Cell, the country consumed over 28 million metric tonnes of LPG in the last financial year.

What Lies Ahead

With no immediate indication of a rollback, small businesses and street food vendors are likely to feel the pressure. The next monthly revision is due on July 1. Sources familiar with the pricing mechanism said the government continues to monitor international energy prices, which influence domestic LPG rates. For now, commercial establishments will have to absorb or pass on the latest hike.