By Raza Hasnain Naqvi
Diwali is around the corner and the rate of commercial LPG cooking gas has been increased by Rs 266. Will this decision impact the middle class and lower sections of society?
Newspapers today are full of full-page ads urging people to buy jewellery and other electronic and non-electronic items as that wonderful festival of Diwali is here again. Shopping needs to be done and people are shopping away within their budget.
However, within all these full-page marketing ads, there is a small news column on the front pages of newspapers too on November 2, 2021. This news column informs the people that there is a big price rise in commercial cooking gas cylinders.
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Companies have increased the rate of commercial cooking cylinders. As a result, all eateries, restaurants, hotels, and roadside outlets will bear the brunt of this price hike. Most families may be quietly thanking god that the rate of domestic LPG cylinders has not been increased. They are somehow making ends meet by paying about Rs 937 for a domestic cooking cylinder of 14 kg.
But the important thing to note is that a big festival like Diwali is here. A lot of shopping is done at this time. This includes shopping for sweets. This is where the price rise in commercial LPG will hit the pocket of the common man. All sweets are made for business on commercial cylinders. This will lead to an increase in the prices of sweets and people will have to buy sweets and confectionaries at a much higher rate now. This is a festival shock for the people, who are already facing a hard time with the increase in petrol and diesel prices.
Commercial LPG Price Difference
The rate of the commercial cylinder has gone up and crossed the mark of Rs 2000. The 19-kg commercial LPG cylinder has increased from Rs 1826.50 to Rs 2093 now. Within one year, the commercial LPG rate has seen a rise of Rs 768 about 58%. In November 2020, the rate was Rs 1325; while one year later, the rate has come to Rs 2093.
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Domestic LPG Price variation
Even though there has been no domestic cooking gas increase along with commercial cooking LPG hike, yet the domestic rates have been rising steadily since January 2021. The rates have been increased eight times in 2021. In January 2021 the cost of a domestic LPG cylinder stood at Rs 694, but now in November 2021, the price has crossed Rs 900.
The stated reason is the rise in the price of global crude oil and the variation in the dollar-rupee exchange rate. Experts have stated that the rate of domestic LPG could cross the Rs 1000 mark soon enough.
Costlier Food
This rise in commercial cooking gas rates is a definite shock particularly during Diwali as sweets are exchanged in large numbers. But those sweets will now become costlier. Another burden on the common man’s budget. Generally speaking, there is going to be a bigger upset among many other classes of people, not just the middle class and below sections. Many people order food via popular food delivery apps. Those chosen food items are all going to become costlier from today. You will have to pay much more to satiate your hunger pangs.
This may result in thinking about why to pay so much for some food item that was cheaper earlier. Why not just stick to home-cooked food most of the time? Orders will go down and so will the business profit of companies. This will lead to salary cuts and lower take-home salaries. This way what you can now see is that an increase in commercial LPG cooking gas will start hitting many incomes in households. Those in the restaurant and food-ordering sector will be the first to feel the pinch.
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Just a Thought
We have to understand that everything is linked. A price hike in one sector begins to hurt other sectors too. If the government doesn’t step in to control the situation, then life will become difficult for many people. As it is, Covid-19 has hit businesses hard. If post-Covid-19 recovery is not done properly by businesses, then it will end up hurting the Indian economy. Studies have already shown that India is lagging behind other countries like China, Russia, Brazil and South Africa on different economic and social parameters. If a populous country like India does not handle its economy properly, then not only will it hurt the nation, but other nations too will be impacted. Everything is linked, you see. No nation, society or community exists as an island. We are all connected.