Commercial LPG price increases by Rs 42 per cylinder in Jaipur

Jaipur: Commercial LPG prices surged by Rs 42 with the 19 kg cylinder now costing Rs 3,141 in Jaipur. Similarly, the 5 kg FTL (Free Trade LPG) will now cost Rs 825, by Rs 11. Compared to domestic gas prices of Rs 65 a kg, the commercial cylinder cost is nearly three times, at Rs 165.

While small roadside food vendors using FTL cylinders are passing on the prices to the consumers, large consumers of 19 kg cylinders like hotels said they are absorbing the cost as the tourist inflow is already thinned out due to summer season and higher travel costs.

In fact, the LPG distributors had alleged that the Oil Marketing Companies (OMCs) are resorting to forced billing and sale of 19kg and 5kg FTL commercial cylinders despite a shortage in domestic LPG supply.

Dealers said consumers in rural areas are facing a waiting period of 7 to 10 days for domestic cylinder delivery. Given the gap of 45 days for booking the next refill, they have to wait up to 55 days. For consumers in urban areas, the waiting period is still between 5 to 7 days.

“Instead of meeting the rural demand and reducing the waiting period, the OMCs are pushing sale of commercial cylinders as it fetches more profits for them,” said a senior representative of Rajasthan LPG Distributors Association.

They had already written to the state-level officials of OMCs, alleging that field officers are manipulating distributors’ orders and forcing supplies of commercial cylinders even when distributors already have adequate stock.

Dealers questioned the companies that are aggressively pushing commercial LPG sales instead of addressing domestic demand.

An ongoing dispute between LPG distributors and oil marketing companies has intensified over the alleged forced sale of Suraksha Rubber Tubes, even as distributors report holding excess inventories of the product.

Raising concerns of forced allocations, the distributors said they are being compelled to procure the product at around Rs 130 per unit and sell it at Rs 190, while similar products are available in the open market for as low as Rs 85.