Chennai: A sharp increase in commercial LPG cylinder prices has come into effect in Chennai from April 1, raising concerns among traders and consumers about a likely surge in food prices across the city.
As part of the monthly price revision carried out by oil marketing companies, the cost of a 19-kg commercial LPG cylinder has been increased by Rs 203. The price has risen from Rs 2,043.50 to Rs 2,246.50, marking a significant jump that directly impacts businesses dependent on bulk cooking fuel.
The pricing of LPG is determined based on fluctuations in international crude oil prices and the exchange rate of the Indian rupee against the US dollar. The latest hike is also being linked to supply disruptions caused by ongoing geopolitical tensions in West Asia, which have tightened global LPG availability. The increase has particularly affected hotels, restaurants, roadside eateries, and tea stalls across Chennai. Many business owners say they are already operating under pressure due to rising input costs and reduced margins.
With this fresh hike, several establishments are now considering revising menu prices to offset the additional burden. “Costs are going up every month. We have no option but to increase prices if this continues,” said a restaurant owner in the city, reflecting a growing sentiment among small and medium-scale food businesses. Even before this revision, there were reports of LPG shortages in certain areas, which had pushed up food prices in some establishments.
However, offering some relief to households, there has been no change in the price of domestic LPG cylinders used for cooking in homes. The rates for household consumers remain unchanged, insulating them from the immediate impact of global market volatility. Despite this, the indirect impact of rising commercial LPG prices is likely to be felt widely. With eateries forming a crucial part of daily life in Chennai, any increase in operational costs can translate into higher expenses for consumers in the near future.
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