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Commercial Gas Cylinder: On Friday, the Central Government announced a massive 50% hike in the prices of commercial LPG cylinders, raising the cost from ₹2,078 to ₹3,071.50 per cylinder.

Commercial Gas Cylinder Price Hike: Amidst rising global energy prices, state-run oil companies have largely shielded domestic consumers from any immediate impact. However, the price of commercial cylinders has been hiked by ₹993.

This hike comes just two days after the conclusion of elections in five states; the final phase of these elections concluded in Bengal on April 29. The prices of domestic LPG and Aviation Turbine Fuel (ATF)—used by domestic airlines—remain unchanged. No revisions have been made to these rates. However, the price of jet fuel for international airlines has been hiked by 5%.

Companies to Absorb Input Costs Themselves

Retail prices for petrol and diesel have also been kept stable. According to the Indian Oil Corporation (IOC), no changes have been made to the prices of key fuels that directly impact the general public. Oil companies have decided to absorb the increased input costs themselves, a decision that also covers the cost of ATF used by domestic airlines.

However, in line with global benchmarks, the prices of ATF for international carriers—as well as certain industrial fuels—have been increased. Meanwhile, the hike in commercial LPG cylinder prices comes into effect on May 1. In Delhi, the price of a 19-kilogram commercial cylinder now stands at ₹3,071.50.

Will Inflation Rise Now?

Given the massive ₹993 hike in commercial gas cylinder prices, a rise in inflation is almost certain. This will undoubtedly have an impact on your wallet. According to a media report, the food delivery platform Eternal stated during its recent earnings call that the recent shortage of LPG in certain parts of India has not, thus far, had any significant impact on its growth or profitability. Despite reduced supply at the local level, demand on its platform has remained stable.

Responding to a question regarding the potential impact during the current quarter, the company's founder, Deepinder Goyal, noted that while some restaurants in the affected regions did face temporary supply-related difficulties, overall business operations at the platform level continued without interruption. He stated, "As of now, there has been no significant impact."

What will be the impact?

The rise in the price of commercial gas cylinders will increase cooking costs for restaurants, *dhabas*, and hotels. Consequently, the prices of *thalis* and snacks may go up.
During this wedding season, this price hike will result in higher production costs for sweets and bakery items; as a result, you may have to pay more for cakes and biscuits compared to previous rates.
Expenses for *tiffin* services—catering to office commuters and students—could also increase.
The prices of everything from tea and *samosas* to *chaat* and *pakoras* may rise, as increasing input costs could prompt small vendors to either raise their prices or reduce portion sizes.