KSHA on Friday urged the central government to immediately reduce commercial LPG cylinder prices, which have almost doubled in recent months, citing the sharp decline in global crude oil prices.
Commercial LPG cylinders have been priced at approx. $1800 in February.
After dealer discounts, hotels purchased them for approx $1,650 to $1700 per cylinder.
He said the conflict in the Middle East had severely disrupted global gas supplies, which had gradually recovered to nearly 70 percent of normal levels.
Shetty said that these unrest led to a sharp increase in commercial LPG prices.
Hotels and restaurants are paying now $$3,198 per commercial LPG cylinder – which is almost double what they were paying a few months ago.
With global crude oil prices now down to around US$70 per barrel, roughly the same level as in February, the association urged the government to reduce prices accordingly.
“In view of the correction in global crude oil prices, we urge the central government to review the prices of commercial LPG cylinders accordingly. We request, from July onwards, that the price of commercial LPG cylinders be brought back to the February level so that the hotel industry gets the much-needed relief,” Shetty said.
The United States and Iran published the text of the interim agreement signed by their presidents to end the war that lasted 111 days.
The agreement is likely to reopen or normalize shipping through the Strait of Hormuz, providing major relief to India, one of the world’s largest importers of crude oil.
The narrow waterway between Iran and Oman handles nearly a fifth of global oil consumption and serves as the main export route for major producers in the Gulf, including Saudi Arabia, Iraq, Kuwait, the United Arab Emirates and Qatar – all major energy suppliers to India.
Supplies of crude oil – the raw material used to produce fuels such as gasoline and diesel – and natural gas – used to generate electricity, produce fertilizer, compressed into compressed natural gas to fuel vehicles, and supplied via pipelines to home kitchens for cooking – have crossed the Strait since the war began in late February.
This has led to sharp increases in crude oil prices, freight insurance premiums and freight rates.
The sources said that reopening and reducing tensions are likely to help stabilize global energy markets and improve the outlook for energy importing countries such as India.
India, the world’s third-largest oil importer and consumer, has implemented a series of emergency measures to protect domestic fuel supplies following the escalation of hostilities in West Asia, a region that accounts for a large share of the country’s crude oil and liquefied petroleum gas imports.
