A commercial LPG price hike has pushed the cost of a 19kg cylinder above Rs 3,000 in Andhra Pradesh, prompting hotel and restaurant operators to warn that food prices may rise as businesses try to absorb higher cooking costs.
State-owned oil marketing companies increased the price of a 19kg commercial LPG cylinder by Rs 69 from Thursday. The cylinder now costs Rs 3,001, compared with the earlier price of Rs 2,932. The price of a 40.5kg commercial cylinder has also increased to Rs 7,500 from Rs 7,328, a rise of Rs 172 per refill.
The revision does not affect domestic LPG cylinders, whose prices remain unchanged. However, commercial users including hotels, restaurants, tea stalls and small eateries depend on commercial cylinders for daily cooking and are directly exposed to the increase.
Hotel operators in the state have described the revision as an additional financial burden and said they may pass part of the cost on to customers through higher prices for food items. RV Swamy, president of the AP Star Hotels Association, said commercial LPG prices had already been increased in May and June and questioned the timing of another revision during the festive season in September and October.
Swamy said hotels were also facing higher transport costs and rising prices of essential commodities and vegetables. He warned that small businesses such as tea stalls and modest hotels could struggle to remain operational, with potential consequences for workers employed in the sector.
The association has appealed to the Centre and the Andhra Pradesh government to intervene by regulating commercial LPG prices, providing special subsidies and offering tax rebates. Hotel operators said that during the US-Iran conflict, commercial LPG prices had risen by Rs 1,300 before part of that increase was later reduced by Rs 300.
G Srinivasa Rao, president of the AP Hotels Association, said a state-owned oil marketing company had offered a discount of Rs 350 on each commercial LPG refill. He added that alternatives such as firewood and electricity were not financially viable for many businesses, while limited progress in piped natural gas infrastructure meant commercial LPG remained the main cooking fuel for the sector.
The latest increase therefore leaves Andhra Pradesh’s food businesses facing a higher operating cost at a time when industry representatives are already seeking relief on fuel, transport and essential commodities. Their appeal for subsidies, tax rebates and further intervention now rests with the Centre and the state government.