Festival Season Brings a New Round of LPG Price Changes
As the Navaratri celebrations and the festival season get underway, the price of LPG cylinders has moved again, with a notable rise for commercial cylinders and no change for domestic ones. Public sector oil marketing companies have increased the rate of a standard 19-kilogram commercial cylinder by about ₹15 to ₹15.5, reflecting ongoing adjustments based on global crude oil trends. In Kerala, the new state-wise prices show a clear spread across major cities: Kochi now at ₹1,602.5, Thiruvananthapuram at ₹1,623.5, and Kozhikode at ₹1,634.5.
Commercial vs Domestic Cylinders: What Has Changed
The current escalation affects commercial cylinders used by businesses such as hotels, restaurants, and shops. Prices for this segment rose by a modest but meaningful amount, a move that hospitality and small traders say could translate into higher operating costs at a time when consumer spending is sensitive during the festive period.
In contrast, home-use cylinders (14.2 kg) have not seen any price change in this cycle. The domestic cylinder prices in Kerala remain at ₹860 in Kochi, ₹862 in Thiruvananthapuram, and ₹861.5 in Kozhikode, offering some relief to households even as other segments edge up.
Historical Context: The Pattern of Monthly Adjustments
Across the year, the public oil marketing companies revise LPG prices monthly after assessing international crude oil prices. Earlier in 2024, commercial cylinders experienced a sequence of reductions in several months: ₹43 cut in April, ₹15 in May, ₹25 in June, ₹57.5 in July, ₹34.5 in August, and ₹51.5 in September. Despite ongoing reductions in the commercial segment, household cylinders did not follow suit in the same period; instead, the domestic price trend remained stable through the subsequent months.
The price behavior underscores how the two segments can diverge even as they share the same underlying crude price signals, with commercial cylinders reacting more sharply to monthly revisions.
Policy Context and Household Impact
India remains heavily dependent on LPG for cooking, with roughly 90% of domestic LPG use directed to households. In Kerala, estimates suggest about one crore LPG consumers, highlighting the broad impact of price movements on everyday living. The government has also pursued social protection efforts; during earlier campaigns, special measures like the Ujjwala scheme extended support to poorer households, with subsidies and new connections going to millions of women head-of-household beneficiaries. In a separate development, there was a noted price adjustment around Women’s Day in March 2024, when a 100-rupee relief was announced for homemakers, seen by many as a symbolic gesture ahead of elections, and subsequently a separate domestic price movement occurred in April that added ₹50 to some nominal domestic cylinder costs.
Industry observers note that while households may get some stability in domestic cylinder pricing, the commercial segment faces challenges as restaurants, hotels, and small retailers absorb higher input costs. With 90% of LPG used domestically, even modest changes in the price of a 19 kg cylinder can influence consumer prices indirectly through service charges and menu pricing in hospitality sectors.
Looking Ahead
Analysts say price revisions will continue to mirror international crude oil dynamics and monthly adjustments by the oil marketing companies. For households in Kerala and across India, the key question is whether domestic cylinders will see further relief during the ongoing festive period or whether the commercial segment will stabilize at current levels given rising restaurant and retail activity. The government’s broader energy and social welfare programs will also shape how soon consumers feel the benefits, if at all, of any downward revisions in the near term.
Key Numbers at a Glance
- Commercial cylinder (19 kg): Kochi ₹1,602.5; Thiruvananthapuram ₹1,623.5; Kozhikode ₹1,634.5
- Domestic cylinder (14.2 kg): Kochi ₹860; Thiruvananthapuram ₹862; Kozhikode ₹861.5
- Monthly changes for commercial cylinders in 2024: April ₹43, May ₹15, June ₹25, July ₹57.5, August ₹34.5, September ₹51.5
