Congress targets Modi over commercial cooking gas increase

IPA Staff
6 Min Read
Congress attacked Prime Minister Narendra Modi on Sunday over another increase in commercial cooking gas prices, calling him “Mehengai Man” and accusing his government of pursuing an agenda to “loot the public”.

The opposition party’s criticism followed a revision by state-owned oil marketing companies that raised the price of a 19-kg liquefied petroleum gas cylinder by Rs 10 to Rs 2,820 in Delhi from November 1. The increase adds to the operating expenses of restaurants, hotels, caterers and other businesses dependent on commercial cooking fuel.

Congress used its official social media account to challenge the government’s record on prices, claiming that a commercial cylinder costing Rs 1,684 at the beginning of the year now costs Rs 2,971. It said the difference amounted to Rs 1,287 over 10 months and alleged that Modi’s sole agenda was to extract money from the public.

The Rs 2,971 figure corresponds to the revised commercial cylinder price in Kolkata, rather than Delhi, where the current rate is Rs 2,820. Prices differ between cities because of local taxes and other pricing factors. The party’s comparison therefore needs to be understood in the context of the location and period covered by its figures.

The party’s description of Modi as “Mehengai Man”, or inflation man, formed part of its political attack on the government over living costs. Its allegation that the administration intended to loot consumers was a partisan accusation, not an established finding about the purpose of the pricing decision.

The latest revision is the third consecutive monthly rise in commercial LPG prices. A 19-kg cylinder became Rs 9.50 dearer in September and Rs 62.50 dearer in October, before the additional Rs 10 increase took effect on Sunday. Together, those changes amount to an increase of Rs 82 per cylinder over three monthly revisions in Delhi.

The higher charges arrive after sharp movements in commercial LPG rates earlier this year. Prices rose steeply between February and June, before oil marketing companies reduced rates in July and August. Those reductions were subsequently followed by the September, October and November increases.

Domestic cooking gas prices, however, were not changed in the November revision. A standard 14.2-kg household cylinder continues to cost Rs 942 in Delhi. That distinction matters because the immediate price increase applies to commercial customers, rather than directly increasing the regulated retail price paid by households for domestic cylinders.

Nevertheless, commercial LPG is a significant input for food-service establishments, particularly smaller restaurants, roadside eateries and catering operators. Businesses purchasing multiple cylinders can face cumulative increases in their fuel bills, although the extent to which they pass those costs on to customers depends on their consumption, margins and pricing decisions.

The November adjustment also coincided with a rise in aviation turbine fuel prices. State-owned retailers increased the jet fuel rate by approximately Rs 1.37 a litre to Rs 138.50, extending a series of monthly increases that have added to airline operating costs. Petrol and diesel retail prices were left unchanged in the same round of revisions.

Commercial LPG and aviation fuel rates are ordinarily reviewed at the beginning of each month, with international benchmark prices and currency movements influencing the calculations. Global energy supply disruptions and higher transport costs have contributed to volatility in fuel markets, although those factors do not independently establish the political motives alleged by Congress.

The commercial cylinder now costs about Rs 2,775 in Mumbai and Rs 2,994.50 in Chennai, compared with Rs 2,820 in Delhi. Kolkata’s revised rate is Rs 2,971. The differences underline why a single national price cannot be used to describe the amount paid by every commercial LPG customer.

The dispute comes as opposition parties seek to connect changes in administered and market-linked prices with the wider cost of running households and small businesses. Yet the commercial cylinder revision is set through the oil retailers’ pricing process, and the available figures do not show that the November increase was accompanied by a change in household LPG charges. The distinction also limits any immediate calculation of its direct effect on family fuel expenditure nationwide.

The oil companies’ revised schedule also lists a five-kilogram free-trade LPG cylinder refill at Rs 782, with a new connection priced at Rs 1,903. These smaller cylinders are sold under a separate market-linked category and were included alongside the principal commercial and aviation fuel adjustments.

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