Why Did Commercial LPG Prices Surge by Rs 111?

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Why Did Commercial LPG Prices Surge by Rs 111?

Synopsis

The recent hike in commercial LPG prices by Rs 111 at the start of January has heightened financial pressures on businesses reliant on cooking gas. With prices varying across major cities, the impact on operational expenses is substantial, while household consumers remain unaffected by these changes. Learn more about how this affects the catering industry.

Key Takeaways

  • Commercial LPG prices rose by Rs 111 this January.
  • Prices vary significantly across major cities.
  • Hotels and restaurants face increased operational costs.
  • Household consumers are not affected by this price hike.
  • Oil marketing companies adjust prices based on global market conditions.

New Delhi, Jan 1 (NationPress) The beginning of the month has seen a substantial increase in commercial LPG prices, intensifying the financial strain on hotels, restaurants, and various businesses that depend heavily on cooking gas.

The cost of a 19-kg commercial LPG cylinder has escalated by Rs 111 in major urban centers.

In Delhi, the price for a 19-kg cylinder now stands at Rs 1,691.50. In Mumbai, it has risen from Rs 1,531.50 to Rs 1,642.50.

Kolkata's prices have jumped from Rs 1,684 to Rs 1,795, while Chennai has experienced the most significant increase among metropolitan areas, with costs soaring from Rs 1,739.50 to Rs 1,849.50 per cylinder.

This recent price hike is likely to considerably elevate operating costs for businesses such as hotels, restaurants, catering firms, and small food outlets.

In contrast, residential consumers remain unaffected, as the prices for domestic LPG cylinders have not changed.

The last adjustment in commercial LPG prices occurred on December 1, 2025, when rates were reduced by Rs 10 per cylinder.

At that time, the price for a 19-kg cylinder in Delhi was cut to Rs 1,580.50.

This decrease marked the second consecutive reduction, following a Rs 5 decrease in November, which had partially offset a Rs 15.50 increase implemented in October.

Since April 2025, there have been multiple downward adjustments in commercial LPG prices, totaling six reductions during this timeframe, which collectively lowered costs by Rs 223 per cylinder before this latest hike reversed a significant portion of those decreases.

Prices for LPG and aviation turbine fuel are updated on the first day of each month by oil marketing firms such as Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum, based on global fuel price fluctuations and exchange rate changes.

Point of View

It is crucial to recognize the implications of the recent commercial LPG price hike. With the hospitality sector already under pressure, this increase in operational costs could hinder recovery efforts. While households remain insulated from these changes, the ripple effects on small businesses warrant attention and action from authorities to mitigate financial strain.
NationPress
06/01/2026

Frequently Asked Questions

What caused the recent increase in commercial LPG prices?
The increase is attributed to fluctuations in global fuel prices and adjustments made by oil marketing companies.
How much has the price of a 19-kg commercial LPG cylinder increased?
The price has gone up by Rs 111 across major cities.
Are household LPG prices affected by this increase?
No, household LPG prices remain unchanged despite the rise in commercial LPG rates.
When was the last change in commercial LPG pricing?
The last adjustment was on December 1, 2025, when rates were reduced by Rs 10 per cylinder.
Which cities have seen the highest increases in LPG prices?
Chennai has recorded the highest hike among metro cities, with prices rising significantly.
Nation Press