In a move that will squeeze the margins of businesses across the country, state-run oil marketing companies have increased the prices of commercial liquefied petroleum gas (LPG) cylinders with immediate effect. This decision reverses the recent trend of reductions, putting immediate pressure on the operating costs of hotels, restaurants, and various service providers.
Nationwide Price Increase Details
The price revision sees a uniform hike of Rs 111 for a standard 19-kg commercial LPG cylinder across all major cities. The retail rates in key metropolitan areas have been adjusted upwards significantly.
In the national capital, the price in Delhi has risen to Rs 1,691.50 from the previous Rs 1,580.50. Mumbai witnessed an increase, with the new price set at Rs 1,642.50, up from Rs 1,531.50. For Kolkata, the revised rate is Rs 1,795, climbing from Rs 1,684.
Chennai recorded one of the sharpest rises, where the price jumped from Rs 1,739.50 to Rs 1,849.50. Additionally, prices for the 5-kg free trade LPG (FTL) cylinders were also raised by Rs 27.
Impact on Businesses and Contrasting Trends
This price hike is expected to have a substantial impact on the operational expenses of businesses that are heavily dependent on cooking gas. The hospitality and catering sectors, which had experienced some financial relief over the past month due to successive price cuts, are likely to feel the pinch the most.
Household consumers, however, have been shielded from this latest revision. The prices of domestic LPG cylinders (14.2 kg) remain steady at Rs 853, a level maintained since a Rs 50 increase in April last year.
This increase marks an end to a phase of moderation for commercial LPG. Since April 2025, these cylinder rates had benefited from six reductions, culminating in a cumulative cut of Rs 223 per cylinder, which included minor rollbacks in November and December.
Aviation Fuel Gets Cheaper, Monthly Price Revisions Continue
In a contrasting development, the new year brought some relief to the aviation industry. The price of Aviation Turbine Fuel (ATF) was reduced effective January 1. In Delhi, ATF prices were slashed from Rs 864.35 to Rs 791.48 per kilolitre.
This reduction is anticipated to ease the pressure on airline operating costs, where fuel constitutes nearly 40% of total expenses. The price adjustments for both LPG and ATF are part of the regular monthly exercise undertaken by the three state-owned fuel retailers—Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum.
These revisions, which occur on the first day of every month, are based on a formula linked to international benchmark fuel prices and fluctuations in the exchange rate of the Indian rupee.
