The hike is likely to directly affect commercial users such as restaurants, hotels, and catering services that rely heavily on LPG for daily functioning. With the increase in cylinder prices, their operating expenses are set to rise.
Oil marketing companies have announced a fresh revision in the prices of commercial LPG cylinders, effective from October 1 (Wednesday). The increase comes just ahead of the festive season, impacting hotels, restaurants, and several businesses that rely heavily on commercial cooking gas.
Price hike on commercial cylinders
As per the revised rates, the price of a 19 kg commercial LPG cylinder has been raised by Rs 15.50. In the national capital, Delhi, the new retail price of a 19 kg commercial cylinder now stands at Rs 1,595.50. Similar adjustments have been made in other metropolitan cities as well, although the exact price may vary depending on local taxes and transportation charges.
Domestic cylinders unaffected
Crucially, there has been no change in the rates of 14.2 kg domestic LPG cylinders. This provides relief to households, as domestic cooking gas prices remain stable for now despite the upward adjustment in commercial rates.
Impact on businesses
The revision is expected to have a direct impact on commercial establishments like eateries, hotels, and catering services, all of which depend on LPG for daily operations. With the price per cylinder rising, operational costs for these businesses are likely to increase, and industry experts suggest some of these costs may eventually be passed on to consumers.
Context of price revisions
LPG cylinder prices are reviewed periodically by oil marketing companies, usually at the beginning of each month, based on global crude oil prices and fluctuations in foreign exchange rates. This latest hike follows similar adjustments seen earlier this year, keeping commercial users sensitive to global energy market changes.
While the government has chosen not to alter domestic cooking gas tariffs, the recurring increases in commercial LPG prices highlight the pressure of rising energy costs on businesses. Further revisions will depend on the movement of international markets and import prices in the coming months.
