The price of commercial LPG used by hotels, restaurants and other establishments has been increased by Rs 9.50 per 19-kg cylinder from Tuesday, September 1, in line with international benchmark prices.

The price has risen from Rs 2,738 to Rs 2,747.50 per 19-kg cylinder, according to state-owned oil marketing companies.

The price of the 5-kg market-priced LPG cylinder, known as 5-kg FTL, has also been increased. It now costs Rs 764, up from Rs 762.

The latest increase follows two consecutive monthly cuts in commercial LPG prices. Rates were reduced by Rs 183.50 per 19-kg cylinder on July 1 and by a further Rs 192 on August 1.

Commercial LPG had surged during West Asia conflict

The two monthly reductions came after commercial LPG prices surged during the West Asia crisis, which pushed international energy prices to record highs in June.

Following the outbreak of the conflict in late February, the price of a 19-kg commercial LPG cylinder had risen by Rs 1,373, from Rs 1,740.50 in February to Rs 3,113.50 in June.

The latest revision therefore comes after a sharp correction in commercial LPG prices over the previous two months.

Domestic LPG price remains unchanged

The price of LPG used in household kitchens has not been changed. A 14.2-kg domestic LPG cylinder continues to cost Rs 942.

Domestic LPG prices were last increased by Rs 29 per cylinder on June 7. Before that, rates had risen by Rs 60 in March after supply disruptions linked to the West Asia crisis pushed up international energy prices.

ATF price also raised

Alongside the LPG revision, the price of aviation turbine fuel (ATF), or jet fuel, has been increased by 5.46 per cent.

The price has gone up by Rs 6.28 per litre to Rs 121.28 per litre for domestic airlines. This follows a Rs 5 per litre increase on August 1.

The two consecutive increases are expected to add to the fuel costs of airlines, with ATF accounting for up to 40 per cent of their operating costs.

Petrol and diesel prices unchanged

There has been no change in the prices of petrol and diesel. Both fuels were last increased by about Rs 7.50 per litre in May.

ATF and LPG prices are revised on the first day of every month, based on international benchmark prices and foreign exchange rates.

The final rates can vary between states because of local taxes, including VAT.