Hotels, restaurants and foodservice operators are set to benefit from lower kitchen fuel costs after oil marketing companies (OMCs) reduced the price of 19-kg commercial LPG cylinders by Rs 183.50, effective July 1, offering much-needed cost relief to the hospitality sector after months of sustained price increases.
Following the revision, the price of a 19-kg commercial LPG cylinder in Delhi has been reduced to Rs 2,930 from Rs 3,113.50. The reduction marks the first cut in commercial LPG prices this year after repeated hikes driven by geopolitical tensions in the Middle East and elevated global energy prices.
The latest revision is expected to ease operating expenses for hotels, restaurants, cafés, bakeries, cloud kitchens and catering businesses that rely heavily on commercial LPG for daily kitchen operations. Industry stakeholders said the move will improve cost efficiency in a sector where energy expenses form a significant part of operational expenditure.
However, there is no relief for household consumers, as the price of the 14.2-kg domestic LPG cylinder remains unchanged across the country.
The reduction comes after commercial LPG users faced successive price hikes over recent months amid supply concerns and rising import costs. While the latest cut offers immediate financial relief to commercial kitchens, commercial LPG prices remain above levels seen before this year’s spike. Industry observers believe stable fuel prices will be crucial for sustaining profitability as hospitality businesses continue to navigate inflationary pressures and evolving consumer demand.
