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Sharp Rise in Commercial LPG Rates to Impact Hospitality Sector

Price of 19 kg cylinder jumps by ₹993; households spared from latest energy cost adjustment

by TheReportingTimes

NEW DELHI, MAY 1 — Restaurants, hotels, and small businesses are bracing for higher overheads after the price of commercial LPG cylinders saw a drastic increase starting Friday. The new price for a 19 kg commercial unit stands at ₹3,071.50 in Delhi, a jump of nearly ₹1,000 from previous rates, as energy companies respond to high global crude prices.

The price of smaller 5 kg FTL cylinders, frequently used by small-scale commercial vendors, also rose by ₹261. Government sources affirmed that the latest revision is restricted to bulk and commercial categories, which represent a minority of total LPG consumption in the country. They stated that the price of the 14.2 kg domestic cylinder, a staple for millions of Indian kitchens, was excluded from the adjustment to maintain price stability for families.

“This increase has been made in the prices of commercial cylinders, while there has been no change in the prices of domestic LPG,” a spokesperson for the oil sector affirmed. The revision comes as Brent crude oil prices fluctuated between $113 and $126 a barrel amid ongoing international supply concerns.

Establishments that rely heavily on gas for daily operations, such as industrial bakeries and large kitchens, maintained that the hike is one of the most substantial in recent months. Business owners stated that the cost of prepared food could rise as a direct consequence of the higher fuel expenditure.

Market observers noted that only about 16% of petroleum products saw a price increase this month, with the majority of consumer-facing fuels remaining steady. They affirmed that the monthly review process by oil marketing companies continues to balance international standards with foreign exchange rates, even as industrial sectors absorb the brunt of global market volatility.

 

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