Recent Price Increases
The price of a 14.2-kg domestic LPG cylinder in India has seen a significant increase, rising by 60 rupees across metropolitan cities. In Delhi, the new price is now 913 rupees, up from the previous 853 rupees. Other cities have also experienced similar hikes, with prices set at 912.50 rupees in Mumbai, 939 rupees in Kolkata, and 928.50 rupees in Chennai.
Additionally, the rates for commercial LPG gas cylinders have increased by 115 rupees. This surge in prices is attributed to ongoing geopolitical disruptions affecting fuel supply.
Impact on the Hospitality Sector
These price hikes and the shortage of commercial LPG cylinders are severely impacting the hospitality sector, particularly in major cities like Mumbai, Bengaluru, and Chennai. Reports indicate that at least 20 percent of hotels and restaurants in Mumbai have had to shut down temporarily due to the LPG cylinder shortage.
AHAR – the Indian Hotels and Restaurants Association – expressed concern, stating, “Despite being a basic operational requirement for restaurants and hotels, commercial cylinders are becoming increasingly difficult to obtain through proper channels.” This shortage is creating challenges for many establishments that rely on these cylinders for their daily operations.
Government Response
In response to the situation, the Indian government has increased the LPG booking period from 21 days to 25 days to help curb hoarding and ensure a more stable supply. Furthermore, the government has invoked the Essential Commodities Act to prioritize the allocation of natural gas, ensuring that supply is maintained at levels corresponding to the average consumption over the past six months.
Officials have indicated that the supply of natural gas must be treated as a priority, stating that it shall be maintained subject to operational availability. However, details remain unconfirmed regarding the exact impact of ongoing geopolitical conflicts on future gas cylinder prices.
