New Delhi, June 1: The latest increase in commercial LPG prices may soon be felt beyond hotel kitchens and restaurant counters, as businesses grapple with a nearly 79% surge in cooking gas costs since late February.
Oil marketing companies raised the price of a 19-kg commercial LPG cylinder by ₹42 from June 1, taking the retail price in Delhi to ₹3,113 per cylinder.
The hike marks the fourth consecutive monthly increase and comes amid elevated global energy prices linked to ongoing tensions in West Asia.
While the immediate burden falls on hotels, restaurants, caterers and small food businesses, industry experts say the bigger question is whether consumers will eventually end up paying more for meals and services.
Why Have Commercial LPG Prices Risen So Sharply?
Since February 28, commercial LPG prices have increased by ₹1,331 per cylinder, according to market estimates. The rise has been driven by higher international fuel prices and disruptions in energy supply routes caused by geopolitical instability in West Asia.
India relies heavily on imports to meet its LPG requirements, making domestic prices vulnerable to global market fluctuations.
Who Is Bearing the Cost?
Experts say that commercial users are increasingly absorbing the burden of rising import costs while domestic household LPG prices remain relatively stable.
"With our high dependence on imports, somebody has to bear the cost. Since domestic consumer prices have largely remained protected, commercial users are being asked to shoulder a larger share of the increase," they said.
According to the experts, the pricing pattern resembles India's electricity sector, where industrial and commercial consumers often pay higher rates to support subsidised tariffs for residential users.
Must Read: India’s LPG production hits record high of 92 TMT per day: Petroleum Ministry
Will Food Prices Rise?
Restaurant owners and food service operators have warned that sustained increases in fuel costs could force businesses to revise prices.
Cooking gas is one of the largest operating expenses for restaurants, cloud kitchens, roadside eateries and catering services. A sharp rise in LPG costs, coupled with increasing expenses for raw materials, wages and transportation, can squeeze already thin profit margins.
Industry observers say large restaurant chains may be able to absorb part of the increase temporarily, but smaller establishments are likely to face greater pressure.
How Much Has the Cost Increased?
A 19-kg commercial LPG cylinder that cost around ₹1,782 before the recent surge is now priced at ₹3,113 in Delhi, representing an increase of nearly 79% in just over three months.
For businesses using multiple cylinders every day, the additional monthly expenditure can run into tens of thousands of rupees.
Is Any Relief Expected?
As of now, there has been no indication of government intervention to ease the burden on commercial consumers. The future trajectory of prices will largely depend on international energy markets and developments in West Asia.
For consumers, the key concern is whether restaurants and food businesses will continue absorbing the additional costs or begin passing them on through higher menu prices in the coming weeks.
Ends.
Comments (0)
Be the first to comment!