Commercial LPG prices have been increased again from today, June 1. Eternal, Swiggy, Jubilant FoodWorks, Devyani International and hotel stocks may remain in focus when the market opens at 9:15 am.
The latest increase in commercial LPG cylinder prices from June 1 is expected to keep several food delivery, restaurant and hospitality stocks in focus, as rising fuel costs continue to put pressure on operating margins across the sector.
Oil marketing companies have increased the price of a 19-kg commercial LPG cylinder by ₹42 in Delhi to ₹3,113.50 and by ₹53.50 in Kolkata to ₹3,255.50. The latest hike comes after a sharp rise in commercial LPG rates over recent months amid geopolitical tensions in West Asia and concerns around supply disruptions through the Strait of Hormuz.
Among the key listed companies likely to remain in focus are Eternal, which operates Zomato and Blinkit, and Swiggy. Both companies rely heavily on restaurant partners, cloud kitchens and delivery ecosystems that are directly exposed to higher fuel and cooking gas costs.
A recent report highlighted that commercial LPG prices had already surged nearly 60% from earlier levels, raising concerns over food delivery economics and restaurant profitability. According to industry estimates, food delivery costs and restaurant bills could rise by 5-10% as businesses attempt to pass on higher operating expenses to customers.
Brokerage discussions around the sector have also pointed out that higher fuel and LPG costs could increase pressure on delivery partner payouts and overall logistics expenses. While the immediate impact may remain manageable, sustained increases could affect margins if companies are unable to fully pass on costs.
Restaurant operators are among the most directly affected. Stocks such as Jubilant Foodworks, Devyani International could also remain on investors’ radar as commercial LPG is a key input cost for restaurant kitchens.
Industry bodies have warned that LPG’s share in restaurant operating costs has risen significantly following recent price hikes. Some restaurant operators have already indicated menu price increases to offset rising input costs, while smaller eateries and cloud kitchens are facing greater pressure due to thinner margins.
The recent surge in LPG prices has been linked to disruptions in global energy markets following the conflict involving the US, Israel and Iran, along with shipping concerns around the Strait of Hormuz. Reports suggest commercial LPG cylinder prices in some cities have risen by more than 60% over the past few months, significantly increasing operating costs across the food services ecosystem.
While a single monthly price revision may not materially alter earnings outlooks, investors are likely to closely track commentary from food delivery platforms, restaurant chains and hospitality companies regarding cost pass-through strategies, pricing actions and margin trends in the coming quarters.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Investors should consult qualified financial advisors before making investment decisions.