New Delhi, May 1: The hike in commercial Liquid Petroleum Gas (LPG) cylinder prices, effective today, has put pressure on the hotel and restaurant owners across the country.
According to the latest rate revision, the prices of 19 Kg commercial LPG cylinders has been increased by a steep Rs 993.
However, there is no change in rates for the households domestic LPG cylinders.
According to the latest rates released by Indian Oil Corporation (IOC), the prices have jumped from Rs 2,078.50 to Rs 3,071.50 after this revision.
Other metro cities also witnessed a similar price hike.
In Kolkata, prices have risen by Rs 994, taking the cost from Rs 2,208 to Rs 3,202 — the highest among major cities.
In Mumbai, the price has increased by Rs 993 to Rs 3,024 from the earlier Rs 2,031. Meanwhile, in Chennai, the rate has climbed to Rs 3,237 from Rs 2,246.50.
Despite the surge in commercial cylinder prices, domestic consumers have been spared any additional burden. The price of the 14.2-kg domestic LPG cylinder remains unchanged. In Delhi, it continues to be available at Rs 913, offering relief to middle-class households and ensuring no immediate strain on kitchen budgets.
The steep rise in commercial LPG prices is expected to impact the hospitality sector, potentially leading to increased food costs in the coming weeks.
Immediate pressure on hospitality margins
The latest price hike will push the operating costs higher overnight as hotels restaurants, street vendors, and cloud kitchens rely heavily on 19-kg cylinders.
Ramesh Kumar who runs a hotel and restaurants in New Delhi expressed shock on the price rise, adding that he will absorb losses temporarily but eventually pass on the costs to customers since margins in food business is thin.
Likely increase in food prices
Many hotel owners say that after this hike consumers will observe menu prices going upward especially in budget and mid-range eateries. The impact will be visible from the next week.
The restaurants owners say that high-frequency items like thalis, snacks, and delivery meals are most vulnerable. This could subtly feed into food inflation, even if it’s not immediately visible in headline consumer price index, said economic experts.
Ripple effect on small businesses
Beyond restaurants, small-scale food processors, bakeries, and catering services will also feel the pinch. For many informal or unorganised players, such a sharp increase can disrupt cash flows and working capital cycles.
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