Commercial LPG cylinder up Rs 10 ahead of Diwali; 19-kg unit costs Rs 2,774.50 in Mumbai

Ahead of Diwali, commercial LPG cylinder prices have gone up again. The price of the 19-kg commercial gas cylinder has risen by Rs 10. The increase is likely to fall directly on the costs of hotels, restaurants and sellers of food items.

There is some relief: the price of the domestic LPG cylinder has not been changed. Ordinary households that use gas for cooking at home will face no additional burden for now.

The new rates in the cities: in Delhi, the 19-kg commercial cylinder now costs Rs 2,820. In Mumbai, it will now cost Rs 2,774.50. In Kolkata the price is Rs 2,964, in Chennai Rs 2,994.50 and in Bengaluru Rs 2,908.

Among these five cities, the commercial cylinder is costliest in Chennai. In Mumbai, too, commercial gas will now cost Rs 2,774.50. The increase could therefore affect the costs of those in the hotel and food business.

Commercial gas cylinders are used mostly by hotels, restaurants, roadside eateries, bakeries and businesses that prepare food items. When the cylinder gets costlier, their operating costs go up.

Demand for sweets, farsan, snacks and other food items is high during Diwali. With gas prices rising, the cost calculations of such businesses could change. The increase is likely to have an effect on food prices, but whether to actually raise prices is a decision for each business. It cannot therefore be said with certainty that customers will have to pay more for restaurant food.

Commercial cylinder prices have swung sharply before. According to the information available, the price was raised by a full Rs 993 on 1 May, taking the 19-kg cylinder past Rs 3,000. Prices were then cut, and have now been raised again by Rs 10.

With Diwali shopping and festival spending already weighing on households, the rise in commercial gas prices will matter for hotel owners. Customers are now watching whether food prices change after the increase.