India has rung in 2026 with a sharp rise in fuel costs for businesses, as prices of 19‑kg commercial LPG cylinders were increased across major cities from January 1.
The hike of Rs 111 per cylinder applies only to commercial LPG, leaving domestic cooking gas prices unchanged and offering limited relief to households even as restaurants and hotels brace for higher costs.
Implemented by Indian Oil Corporation, the increase is expected to directly impact the hospitality and services sector, where commercial LPG is a key input. With food inflation already a concern for many consumers, industry watchers warn that the higher fuel bill could eventually spill over into menu prices.
What changed on January 1
The price revision affects only 19‑kg commercial LPG cylinders used by hotels, restaurants, dhabas, catering units and small food businesses. Domestic LPG cylinders of 14.2 kg, used by households, have been left untouched, continuing a price freeze that has been in place since April 2025.
The Rs 111 increase marks a reversal of the modest relief seen towards the end of last year, when commercial LPG prices were trimmed by Rs 10 in December and Rs 5 in November in select cities. Oil industry data suggest the latest hike has more than wiped out those reductions, pushing prices back to their highest levels in several months.
Latest commercial LPG prices across metros
Following the increase, Delhi has witnessed one of the steepest jumps, with the price of a 19‑kg commercial cylinder rising to Rs 1,691.50 from Rs 1,580.50, its highest level since June 2025.
Kolkata now has the costliest commercial LPG among the major metros, with prices climbing from Rs 1,684 to Rs 1,795 per cylinder. In Mumbai, the rate has increased from Rs 1,531.50 to Rs 1,642.50, while Chennai has seen prices move up from Rs 1,739.50 to Rs 1,849.50.
Across most cities, the hike has been uniform at ₹111, except in Chennai, where the increase works out to ₹110.
A fresh cost blow for hotels and eateries
Commercial LPG is the backbone of India’s food services sector, powering kitchens in restaurants, roadside eateries, hotels and catering businesses. The New Year hike has therefore come as a setback for operators, particularly small and medium establishments already grappling with thin margins.
Industry experts say the timing of the revision, on the very first day of 2026, heightens concerns about rising input costs. With rents, wages and raw material prices also under pressure, many food businesses may find it difficult to absorb the additional fuel expense.
While some larger chains may be able to manage costs through scale, smaller outlets are more vulnerable. Analysts caution that if commercial LPG prices remain elevated, eateries could pass on the burden to customers through higher menu prices in the coming weeks.
Households spared as domestic LPG stays flat
In contrast to the hike for businesses, domestic LPG prices have been kept unchanged across the country, providing some relief to households amid broader inflationary pressures.
In Delhi, the price of a 14.2‑kg domestic LPG cylinder remains Rs 853, unchanged since its last revision on April 8, 2025. Mumbai households continue to pay Rs 852.50 per cylinder, while prices stand at Rs 879 in Kolkata and Rs 868.50 in Chennai.
Stability has also been maintained in other cities, with domestic LPG priced at Rs 890.50 in Lucknow, Rs 860 in Ahmedabad, Rs 905 in Hyderabad, Rs 916.50 in Varanasi and Rs 951 in Patna.
The decision to hold domestic LPG prices steady is seen as an effort to shield households from further cost pressures, even as commercial users bear the brunt of the latest increase.
Why commercial LPG prices matter
Though households have been spared for now, economists point out that higher commercial LPG prices often have indirect effects on consumers. Food inflation can be influenced by fuel costs faced by restaurants and caterers, especially in urban centres where eating out is common.
Moreover, commercial LPG price movements are closely watched as an indicator of broader energy cost trends. Repeated hikes can add to inflationary pressures, particularly in services such as hospitality, events and institutional catering.
