The Indian government on Friday sharply raised the price of commercial liquefied petroleum gas (LPG) sold by state-owned companies by 993 Indian rupees (about €8.90, $10.50), delivering a fresh blow to restaurant, hotel, and food shop owners.

Global energy prices have surged considerably since the outbreak of the war in Iran and the closure of the Strait of Hormuz. A lack of progress in talks between the US and Iran makes a quick end to the blockades seem unlikely.

This is the third consecutive monthly hike for a 19-kg commercial LPG cylinder in India since the war began on February 28. In the capital, New Delhi, an LPG cylinder commonly used by hotels and restaurants will now cost 3,071.50 Indian rupees.

The increase will add more costs for restaurants, hotels, and other food outlets dependent on industrial LPG for daily operations. There are concerns that the hike could be reflected in food and dining costs, with businesses passing on some of the burden to consumers.

Meanwhile, the price of domestic LPG remains unchanged. However, starting today, a new framework of rules comes into force, overhauling how Indian households book and receive their cylinders. The rules, finalized by the country's three major state-owned oil companies — Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum — aim to curb hoarding, black marketing, and illegal diversion of subsidized gas.

Source: www.dw.com