LPG Price Cut Benefits Commercial Cylinders, Domestic Users Still Wait for Relief

Oil companies have reduced commercial LPG cylinder prices, but domestic users see no change. The government controls domestic prices through subsidies, while commercial cylinders follow market rates, causing relief for businesses but not for households.

New Delhi:  On the first of November, oil companies announced changes in the prices of LPG cylinders. However, this news did not bring relief to domestic consumers. This time the price of commercial cylinders has been reduced only.

The price of 19 kg commercial cylinders has been reduced by Rs 5. There was no change in the prices of domestic cylinders.

Difference in prices of commercial and domestic cylinders

The main reasons behind the difference in prices of commercial and domestic cylinders are their use and weight. The commercial cylinder weighs 19 kg, while the domestic cylinder weighs 14.2 kg.

The price of a commercial cylinder ranges between Rs 1500 and 1600, while a domestic cylinder costs between Rs 800 and 900.

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Why only commercial cylinders got relief

Commercial cylinders are mainly used in hotels, restaurants, and dhabas, while domestic cylinders are used for cooking in homes. The government gives subsidies on domestic cylinders, so their prices remain relatively stable.

At the same time, the prices of commercial cylinders depend on the market, so oil companies can make changes in it.

Why were the prices of domestic cylinders not reduced?

The government directly controls domestic cylinder prices. Domestic cylinder prices are already controlled due to subsidy. If their prices increase, it directly impacts the general public.

On the other hand, prices of commercial cylinders are market-based, and there is no government interference. Therefore, relief was given only in the price of commercial cylinders.

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Although this time the prices of gas cylinders have been reduced, this relief is only for businesses. Domestic consumers will still have to buy cylinders at the same old price.

This makes it clear that due to the subsidized domestic cylinder policy, the general public has not received any direct relief at present.