Commercial LPG cylinder prices have increased from October 1, with 19-kg cylinders becoming costlier by around Rs 60 to Rs 70, depending on the region. The latest revision took effect last night and marks the seventh increase in commercial LPG prices since the West Asia conflict began.
The price revision is expected to increase operating costs for businesses that rely heavily on commercial cooking gas, including restaurants, hotels, eateries and cloud kitchens.
Commercial LPG Prices in Major Cities
According to Indian Oil LPG distributors, the price of a 19-kg commercial LPG cylinder in Kolkata has increased by Rs 70 to Rs 2,954 from October 1.
In New Delhi, the price has risen by Rs 62.50, taking the cost of a commercial cylinder to Rs 2,810. Patna has recorded an increase of around Rs 71.50. Commercial LPG prices have also been revised by similar amounts across other major metropolitan cities.
Restaurants and Small Businesses May Face Higher Costs
The latest increase in commercial LPG prices is likely to affect restaurants, hotels, eateries, cloud kitchens and other small businesses that use LPG for cooking.
Businesses facing higher fuel expenses may consider increasing the prices of food items or adjusting portion sizes to manage the additional cost. If restaurants and hotels pass the higher operating expenses on to customers, consumers could eventually see an increase in the price of prepared food.
Why LPG Prices Change Every Month
Oil marketing companies, including Indian Oil, Bharat Petroleum and Hindustan Petroleum, review LPG prices on the first day of every month. The prices are influenced by international crude oil prices as well as fluctuations in the value of the rupee against the US dollar.
LPG is made up of propane and butane and is stored and transported in liquid form under pressure. India imports around 60-65% of its overall LPG requirement, making international market conditions an important factor in domestic pricing.
Commercial LPG Price Hikes Since March
Commercial LPG cylinder prices have been increased seven times since February 28, when the US-Iran war broke out. The revisions have been linked to movements in global prices and supply constraints.
The price changes during this period were:
- March 1: Increase of around Rs 28
- March 7: Increase of Rs 114.50
- April 1: Increase of around Rs 195.50
- May 1: Increase of around Rs 993
- June 1: Increase of Rs 42
- September 1: Increase of Rs 9.50-11.50
- October 1: Increase of around Rs 70
Disclaimer: LPG prices are subject to monthly revisions by oil marketing companies and may vary across locations. The prices and figures mentioned in this article are based on the information available at the time of publication and may change subsequently.