LPG Price Hike During Festive Season: Commercial Cylinder Becomes Dearer by ₹62.50; New Rates Effective in Delhi from Today

At the onset of the festive season, the price of commercial LPG cylinders has risen by ₹62.50. The price in Delhi now stands at ₹2,810. Find out how this will impact hotels and restaurants.

Businesses have faced a price shock right at the start of the festive season. The price of the 19-kg commercial LPG cylinder has been increased by ₹62.50. According to the news agency ANI, the new rates came into effect on October 1. A 19-kg commercial LPG cylinder will now cost ₹2,810 in Delhi.

The hike in commercial LPG cylinder prices could directly impact hotels, restaurants, dhabas, catering services, and other food outlets. Since these businesses anticipate a surge in customers and orders during the festive season, LPG consumption for cooking is also likely to rise.

Prices Had Risen in September Too

This marks the second hike in commercial LPG prices within a month. In September, the price of the 19-kg cylinder was raised by ₹9.50. Now, following the new increase of ₹62.50 in October, the monthly fuel expenses for businesses will rise further.

Likely Greater Impact on Small Businesses

The increased cost of commercial cylinders could particularly affect small hotels, dhabas, restaurants, and eateries. For establishments operating on thin margins, the rise in LPG prices will translate into additional costs.

Potential Impact on Customers

Businesses may choose to absorb the increased LPG costs themselves or pass a portion of the burden on to customers. Consequently, some restaurants and food outlets might adjust the prices of their food and beverages. However, the impact will vary depending on the specific business.

Cost increase depends on consumption

The actual impact of the LPG price hike on a business will depend on the number of commercial cylinders consumed monthly. For high-consumption establishments like hotels, restaurants, and catering businesses, this increase could translate into a significant additional expense.

LPG prices vary by city

Commercial LPG prices are revised periodically, and the cost of a cylinder can differ from city to city. Following the latest revision, the price of a 19 kg commercial LPG cylinder in Delhi has risen to ₹2,810.

Increased usage during the festive season

The festive season across the country begins in early October. During this period, commercial LPG consumption is likely to rise alongside the increased demand faced by hotels, restaurants, and catering businesses. Consequently, the hike in cylinder prices could impact the overall operating costs for these businesses.

No impact on domestic LPG cylinders

This increase in commercial LPG prices has no immediate effect on domestic LPG cylinders. In other words, the price of domestic gas cylinders used for household cooking remains unchanged by this decision; the new pricing affects only businesses that use commercial LPG.