On October 1, 2024, oil marketing companies announced a significant price hike in commercial LPG gas cylinders, with the cost of a 19 kg cylinder increasing by ₹48.50. This revision, now in effect, is expected to have a substantial impact on businesses and commercial establishments that rely on these cylinders for their daily operations.
The price hike means that a 19 kg commercial LPG cylinder now costs ₹1,740 in Delhi, compared to the previous price of ₹1,691.50. Alongside this increase, the price of a 5 kg Free Trade LPG cylinder has also been raised by ₹12, further affecting small businesses and vendors that use smaller gas cylinders. These adjustments come at a time when many commercial sectors, including restaurants, hotels, and catering services, heavily depend on LPG for cooking and other essential functions.
The latest increase follows a similar price hike last month when, on September 1, oil marketing companies raised the price of a 19 kg commercial LPG cylinder by ₹39. After that hike, the price for a 19 kg cylinder in Delhi stood at ₹1,691.50, which has now climbed further to ₹1,740. This continuing upward trend in LPG prices presents challenges for businesses that must manage rising operational costs in a competitive market.
However, the hike is limited to commercial LPG cylinders, as there has been no change in the prices of domestic LPG cylinders, providing some relief to households. The absence of an increase in domestic LPG rates is likely to prevent any immediate cost pressure on residential consumers, though it leaves the commercial sector to bear the brunt of the price surge.
The impact of these price increases will be felt across a range of industries, particularly those reliant on large volumes of LPG for food preparation, heating, and other operational tasks. With the increased costs of cooking fuel, many restaurants and catering businesses may be forced to pass on the burden to consumers, potentially resulting in higher prices for meals and services. Small-scale vendors and food stalls, which often use the 5 kg LPG cylinders, are also likely to experience a strain on their budgets.
As these revised prices take effect nationwide, the commercial sector must adapt to higher operational costs. Whether these increases will lead to price adjustments for consumers remains to be seen, but the ongoing hikes in commercial LPG prices are a cause for concern for many businesses across the country.
