India news: Commercial LPG prices hiked, new cylinder rules take effect

What you need to know

• Commercial LPG in India has been made costlier by 993 Indian rupees (about €8.90, $10.50)
• New rules in domestic LPG booking and deliveries have come into force
• TMC and BJP lock horns over vote tampering allegations in West Bengal

Here is what India is talking about on Friday, May 1:

India increases commercial LPG prices once again

The Indian government on Friday sharply raised the price of commercial liquefied petroleum gas (LPG) sold by state-owned companies by 993 Indian rupees (about €8.90, $10.50) in a fresh setback for restaurants, hotels and food shop owners.

Global energy prices have gone up considerably since the beginning of the war in Iran and the closure of the Strait of Hormuz. A lack of progress in talks between the US and Iran means a quick end to the blockades seems unlikely.

This is the third consecutive price hike for a 19-kg commercial LPG cylinder in India since the war began on February 28.

In the capital, New Delhi, an LPG cylinder, commonly used by hotels and restaurants, will now cost 3,071.50 Indian rupees. 

It will add more costs for restaurants, hotels and other food outlets that are dependent on industrial LPG for day-to-day operations.

There are concerns that the hike could be reflected in food and dining costs, with the businesses passing on some of the burden of the increased prices to consumers. 

New LPG rules imposed

Meanwhile, the price of domestic LPG remains unchanged. However, starting today, a new framework of rules will come into force, overhauling how Indian households book and receive their cylinders.

The rules have been finalized by the country's three big state-owned oil companies — Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum —  in a bid to rein in hoarding, black marketing, and the illegal diversion of subsidized gas. 

Here's a breakdown of what the new rules entail:

• The government is identifying households that receive both LPG and piped natural gas, a practice that is now banned
• The minimum gap between LPG orders has been extended from 21 to 25 days in urban areas and 45 days in rural areas
• Cylinders booked earlier than that timeframe will be automatically blocked
• Consumers will now be sent a pin when making an order that they have to show at delivery

Welcome to our coverage

This is Dharvi Vaid Dhulia from DW's studio in New Delhi, bringing you the latest edition of our India blog. Here we unpack all the biggest events, developments and trends making headlines in India. 

The economic uncertainty from the Iran war continues to be felt over a thousand kilometers away in India. Food vendors and restaurant owners in the country have woken up to a significant hike in commercial liquefied petroleum (LPG) gas cylinder prices.

A new set of LPG rules governing the monitoring and distribution of cylinders for domestic use has also come into effect from today. 

Meanwhile, the result day for India's key state elections is only a weekend away. Political drama appears to be amping up in West Bengal, where Prime Minister Narendra Modi's Bharatiya Janata Party (BJP) is trying to make inroads, challenging the incumbent Chief Minister Mamata Banerjee's All India Trinamool Congress (TMC).

Late last evening, the TMC and BJP were embroiled in a row with each other over allegations of possible electronic voting machine (EVM) tampering. The night culminated with Banerjee visiting a strong room for the machines in her constituency.

Stay tuned as we get you more.