Commercial LPG price hiked by Rs 62.50, 19-kg cylinder to cost Rs 2,810 in Delhi

Ahead of the festive season, the price of 19-kg commercial LPG cylinders has been increased by Rs 62.50, taking the price in Delhi to Rs 2,810 from October 1.

The sharp increase comes at the beginning of the festive season, when hotels, restaurants, eateries and catering businesses typically see higher demand. The latest revision is therefore likely to add to the operating costs of businesses that depend on commercial LPG for their daily cooking requirements.

The price hike also comes less than a month after the previous increase. In September, the price of a 19-kg commercial LPG cylinder was raised by Rs 9.50. With the latest Rs 62.50 increase, businesses using commercial cylinders will now have to account for another rise in their monthly fuel expenses.

Commercial LPG cylinders are primarily used by businesses and establishments that require larger quantities of cooking gas, including restaurants, hotels, roadside eateries, catering services and food outlets. For such businesses, LPG is a recurring operational expense, making changes in cylinder prices particularly relevant during periods of high demand.

The latest increase could be particularly significant for smaller eateries and businesses operating on relatively tighter margins. With cooking fuel becoming more expensive, establishments will have to factor the additional cost into their overall expenses at a time when they are preparing for increased business during the festive period.

The impact could extend beyond the immediate rise in fuel costs. Restaurants, eateries and catering businesses may choose to absorb the additional expense, which would put pressure on their margins, or pass part of the increase on to customers through higher prices for food and beverages.

Any increase in food prices, however, will depend on how individual businesses respond to the higher LPG cost and their overall operating expenses. The impact is also likely to vary across establishments depending on their LPG consumption and pricing structure.

Commercial LPG prices are revised periodically by oil marketing companies, with the final price varying from one city to another. The price of the 19-kg cylinder in Delhi is now Rs 2,810 following the latest revision.

The latest increase is also notable because it comes at the start of October, when businesses across the hospitality and food-service sectors are gearing up for the festive rush. Higher footfall and demand during this period could mean greater consumption of cooking fuel, potentially increasing the overall impact of the price hike on businesses.

For consumers, however, there is no immediate change in the price of domestic LPG cylinders. The latest revision is restricted to commercial LPG, meaning households using domestic cooking gas will not see a change in their cylinder prices as a result of this hike.

The increase in commercial LPG prices comes as businesses enter an important period of the year, with the festive season expected to drive demand across restaurants, hotels, catering services and other food-related establishments. For these businesses, the higher cylinder price will add another cost to their operations at the start of the festive season.- Ends