The price of a 19-kg commercial LPG cylinder has gone up by Rs 62.50. In Delhi, it will now cost Rs 2,810 from October 1.
The hike comes at the start of the festive season. This is when hotels, restaurants, eateries and caterers usually see more demand. It is likely to raise their running costs.
This is the second hike in a short time. In September, the price was raised by Rs 9.50. Businesses will now have to plan for higher monthly fuel bills.
Commercial LPG is mainly used by businesses that cook in large quantities. These include restaurants, hotels, roadside eateries, caterers and food outlets. For them, gas is a regular expense. Any price change matters, especially in busy months.
Smaller eateries with tight margins may feel the pinch the most. Businesses have two choices. They can absorb the extra cost, which would squeeze their profits. Or they can pass part of it on to customers through higher food and drink prices. Whether prices go up will depend on how each business responds. The impact will also differ based on how much gas each one uses.
Oil marketing companies revise commercial LPG prices from time to time. The final price differs from city to city.
There is no change for households. The hike applies only to commercial cylinders. Domestic LPG prices stay the same.
The timing is notable. Businesses in hospitality and food services are getting ready for the festive rush. Higher footfall could mean more gas use, which may add to the effect of the hike.
(Source: India Today)
