Commercial LPG Price Hike Adds Burden on Businesses
The increase in commercial LPG cylinder prices from June has raised operational costs for restaurants, hotels and catering services, with consumers likely to face higher food and service charges.
Businesses dependent on commercial LPG received another setback at the start of June as the government revised fuel prices upward. The price of a 19-kg commercial LPG cylinder has been increased by Rs. 53.50 across the country.
Following the latest revision, the cost of a commercial cylinder in Delhi has risen to Rs. 3,113.50. Kolkata recorded the highest increase of Rs. 53.50, while prices went up by Rs. 43.50 in Mumbai and Rs. 46 in Chennai. Industry observers believe the additional expense could eventually be passed on to customers.
The price of the 5-kg Free Trade LPG (FTL) cylinder, widely used by migrant workers, students and small shop owners, has also increased by Rs. 11. The revised price now stands at Rs. 821.50, adding to the financial burden on low-volume users.
In a relief for the aviation sector, the government reduced Aviation Turbine Fuel (ATF) prices for international airlines by 27 percent during the monthly review. The reduction comes amid easing global fuel prices and is expected to lower operational costs for international carriers.
However, domestic airlines did not receive a similar benefit, as ATF prices for local operators remained unchanged for the second consecutive month.
