Commercial LPG cylinder prices have been significantly increased across the country since April 1st. The price of a 19-kg cylinder has risen by approximately ₹195, bringing its price from ₹1,911 to ₹2,106. Significantly, the total increase in the past 25 days has been ₹309, directly impacting businesses from small to large.
Along with this, the price of 5 kg FTL cylinder has also increased by about Rs 51 and now it is available for Rs 549.
Which sectors will be most affected?
Commercial LPG is mainly used in the food industry, hence its impact will directly fall on the pockets of common people.
Impact on hotels and restaurants
The cost of cooking has increased due to the rising cost of LPG. Hotels and restaurants may increase their menu prices by 20% to 30%. In many places, restaurants are also considering removing certain items or reducing operating hours.
Dhabas and street food vendors
Small shopkeepers and street vendors will face a direct impact on their earnings. Rising costs will force them to either raise prices or reduce profits.
Bakery and sweets business
LPG is used in the production of bread, cakes, biscuits, and sweets. Therefore, the prices of these products may also see an increase.
Catering and Events Industry
Preparing food for weddings, parties, and large events will become more expensive. This could increase catering charges and the overall budget of the event.
Impact on online food delivery
Ordering on platforms like Zomato and Swiggy may also become expensive, as restaurants will pass on their increased costs to customers.
What is the impact on the common man?
The cost of food and beverages will increase pressure on the household budget. Eating out and household expenses may also be affected.
Why did LPG prices increase?
Oil companies are dependent on the international market. Ongoing tensions in West Asia and supply disruptions have led to a surge in crude oil and LPG prices. This has made imports more expensive, and companies have passed this burden on to consumers.
Expert opinion
The National Restaurant Association of India says that ever-rising costs are severely impacting the hospitality sector. If this situation continues, losses could run into hundreds of crores of rupees daily.
Many businesses are now considering moving to electric or other alternatives, but this transition is not easy and requires both time and investment.
The impact of the steady increase in commercial LPG prices is now reaching the common man. Food and beverage prices may become more expensive in the coming days, which is likely to further increase inflationary pressures.
