Mumbai, April 1:
Starting April 1, the prices of commercial LPG cylinders have increased across the country. Oil companies have raised the price of the 19 kg cylinder by ₹195.50 in the national capital. Additionally, the cost of the 5 kg FTL cylinder has also gone up, with an increase of ₹51, bringing its new price to ₹549.
What Will Be the Direct Impact?
Commercial LPG is primarily used in hotels, restaurants, dhabas, bakeries, catering, and small food businesses. The price hike has created challenges for these sectors.
Hotels and Restaurants
- The rise in cooking costs may lead to menu prices increasing by 20-30%.
- Many restaurants are reducing operating hours or removing certain items from their menus.
- Cities like Bengaluru and Mumbai are experiencing revenue losses due to a shortage of cylinders.
Street Food and Small Dhabas
- Small traders will face increased pressure on their profit margins.
- In several areas, food prices have already risen or are expected to rise.
Bakeries and Sweet Shops
- As LPG is used in ovens and other processes, the prices of bread, cakes, and sweets will be affected.
Catering and Event Food Services
- The costs for large functions, parties, and industrial canteens will increase.
Other Effects
- Prices for orders on food delivery platforms (like Zomato and Swiggy) may rise.
- Higher food costs could lead to increased household expenses.
- Some small industries that rely on LPG in their processes will also see a rise in production costs.
Why Are Prices Rising?
Oil companies are linked to global LPG prices. The ongoing conflict in West Asia has disrupted the supply of crude oil and LPG, leading to increased import costs. Companies that were previously absorbing losses have now passed these costs onto consumers. The government has instructed refineries to increase domestic LPG production and prioritize local supply.
What Are Experts Saying?
People in the hospitality sector are expressing concerns that rising costs are shrinking profit margins. The National Restaurant Association of India (NRAI) has warned that if the supply crisis continues, daily losses could reach hundreds of crores. Many businesses are considering shifting to electric or other alternatives, but these options are costly and time-consuming.
Author Profile
- My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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