Mumbai: The new year has begun with a cost shock for Mumbai’s eateries and hotels, as state-owned oil marketing companies (OMCs) raised commercial LPG prices by Rs 111 per cylinder, triggering fresh concerns over higher food prices for consumers.From Jan 1, the price of a 19 kg commercial LPG cylinder in the city has climbed to Rs 1,642.5 from Rs 1,531.5. The hike, part of the OMCs’ monthly price revision aligned with global fuel benchmarks, affects restaurants, hotels, bakeries and catering units across the city. Domestic LPG prices, however, remain unchanged at Rs 853 for a 14.2 kg cylinder.The latest increase comes after two consecutive monthly reductions. Commercial LPG prices were cut by Rs 15.5 per cylinder on Dec 1, preceded by a Rs 5 reduction earlier. With the Jan revision, commercial LPG rates have now touched their highest level since June last year. Industry representatives warned the increase would squeeze already thin margins and could soon translate into higher menu prices, directly impacting Mumbai consumers.“The rise in the price of 19 kg commercial LPG cylinders at the beginning of the new year has been an unexpected development. These cylinders are widely used by hotels and restaurants, particularly small and medium-sized businesses. The price hike will directly escalate operating expenses and consequently reduce profit margins. A small restaurant typically requires around two to three cylinders per day. The recent hike places significant financial pressure on the business and could result in revision of price of products,” said Pradeep Shetty, spokesperson of Hotel and Restaurant Association (Western India) (HRAWI).Echoing similar concerns, AHAR president Vijay Shetty said the increase would significantly raise input costs for restaurants of all sizes. “The gas prices have gone up by approximately Rs 111 per cylinder. This will have a severe impact on input costing of the restaurants. With other input costs of the restaurants already on a high, this increase in gas cylinder rates is another nail in the coffin for restaurants. This leaves them no option but to revise their menu rates, which directly impacts the common man’s pockets and reduces footfalls,” he added.While households have been spared for now—with domestic LPG prices unchanged since the Rs 50 hike in April 2025—industry players fear that repeated increases in commercial fuel costs could dampen dining-out sentiment in Mumbai, especially at neighbourhood eateries and budget restaurants.
