NEW DELHI : Commercial liquefied petroleum gas (LPG) cylinder prices have surged by nearly Rs 1,000, with a 19-kg cylinder now costing Rs 3,071.50 in Delhi, reflecting continued volatility in global energy markets. The latest increase follows a recent hike and is driven by rising crude oil prices and geopolitical tensions.
Benchmark crude rates remain elevated, with Brent trading around $111 per barrel and West Texas Intermediate (WTI) above $105, amid tight global supply. The spike is linked to the ongoing United States-Iran standoff, which has heightened concerns over potential disruptions in the Strait of Hormuz, a key transit route for nearly one-fifth of global oil supplies.
Market uncertainty has been further compounded by developments within the Organization of the Petroleum Exporting Countries (OPEC), including the United Arab Emirates (UAE) signalling its exit, raising questions over future supply coordination.
Despite rising global fuel costs, domestic LPG, petrol and diesel prices have been kept unchanged to contain inflation and protect household budgets. These segments account for the bulk of consumption.
Oil marketing companies (OMCs) have instead passed on the burden to commercial users, including restaurants, hotels and small businesses. The increase is expected to raise operating costs and may lead to higher food prices.
While households remain shielded for now, sustained high crude prices could put pressure on domestic LPG rates in the future.
