Commercial LPG Prices Spike on New Year’s Day: ₹111 Hike Hits Businesses

The new year has brought a sharp increase in fuel costs for businesses across India. On January 1, 2026, the price of a 19-kg commercial LPG cylinder was raised by ₹111. This significant LPG cylinder price hike was implemented by Indian Oil Corporation and impacts major metropolitan areas.The move immediately raises operational costs for the hospitality and food service sectors. Industry experts warn this could lead to higher prices for consumers in restaurants and hotels.

Metro Cities See Sharp Climb in Commercial Cylinder Costs

The new rates are now in effect across key markets. In Delhi, a 19-kg commercial cylinder now costs ₹1,691.50, up from ₹1,580.50. This marks the highest price level seen in the capital since mid-2025.Mumbai’s price rose to ₹1,642.50 from ₹1,531.50. Kolkata saw an increase to ₹1,795, and Chennai’s price climbed to ₹1,849.50. According to Reuters, this hike effectively reverses minor price reductions seen in late 2025.

Hospitality Sector Braces for Impact as Domestic Rates Hold

The targeted increase spares household budgets for now. Prices for 14.2-kg domestic LPG cylinders remain unchanged across all cities. A domestic cylinder in Delhi is still ₹853, a rate stable since April 2025.This divergence places the financial burden squarely on commercial users. Restaurant owners and caterers now face a difficult choice between absorbing the cost or passing it on to customers.

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This latest LPG cylinder price hike underscores the ongoing volatility in energy costs for India’s commercial sector, with businesses starting 2026 under increased financial pressure.

Thought you’d like to know

Q1: Why did commercial LPG cylinder prices increase?

The price was increased by Indian Oil Corporation, a leading state-owned fuel retailer. The hike is attributed to adjustments in international fuel pricing and related operational costs, a common industry practice.

Q2: Will this affect domestic LPG cylinder prices?

No, prices for domestic 14.2-kg cylinders remain unchanged. This hike applies exclusively to the 19-kg commercial cylinders used by businesses like restaurants and hotels.

Q3: How much more expensive are cylinders now?

The increase is ₹111 per cylinder in most major cities. For example, the price in Delhi jumped from ₹1,580.50 to ₹1,691.50, a direct result of the New Year’s Day revision.

Q4: What is the impact on restaurants and hotels?

Businesses will see their cooking fuel costs rise significantly. This could lead to increased menu prices as establishments work to maintain their profit margins amid higher input costs.

Q5: When was the last time domestic LPG prices changed?

Domestic LPG prices were last revised on April 8, 2025. They have remained stable since then, providing consistent budgeting for households across the country.

Trusted Sources: Reuters