OMCs hike commercial LPG by ₹62.50, ATF by ₹16/litre from October 1
Synopsis
India's OMCs have pushed commercial LPG up by ₹62.50 per cylinder and ATF by ₹16 per litre from 1 October — the latest turn in a months-long price whipsaw that took commercial LPG from ₹1,740 in February to ₹3,113 by June, then sharply down, and now back up. With ATF now at ₹137 a litre after three straight monthly hikes, airline cost pressures are building fast — while households keep their ₹942 cooking gas rate unchanged.
Key Takeaways
Commercial LPG raised by ₹62.50 per 19-kg cylinder effective 1 October 2026 .
ATF raised by ₹16 per litre to ₹137 per litre from ₹121 per litre — the third consecutive monthly hike.
Commercial LPG had surged by ₹1,373 per cylinder between February and June 2026 before partial rollbacks in July and August.
ATF accounts for up to 40% of airline operating costs, amplifying the impact on domestic carriers.
Domestic LPG remains unchanged at ₹942 per cylinder ; petrol and diesel prices also held steady.
Prices vary across states due to local VAT levies; revisions are benchmarked to international prices and the rupee-dollar rate.
State-owned oil marketing companies (OMCs) raised commercial LPG prices by ₹62.50 per 19-kg cylinder and aviation turbine fuel (ATF) rates by ₹16 per litre with effect from 1 October 2026, citing firming international benchmark prices and rupee-dollar exchange rate movements. The revisions follow a pattern of monthly adjustments that have seen both fuels swing sharply over the past several months.
ATF Price Rise and Its Airline Impact
ATF prices for domestic airlines have climbed to ₹137 per litre from ₹121 per litre — a ₹16 per litre jump in a single monthly revision. This follows an increase of ₹6.28 per litre (approximately 5.46%) in September and a ₹5 per litre hike in August. Notably, ATF accounts for up to 40% of an airline's operating costs, making it the single largest variable expense for Indian carriers. Three consecutive monthly increases will add meaningful pressure to airline margins, particularly for low-cost operators running tight cost structures.
Commercial LPG: A Volatile Few Months
The ₹62.50 October increase in commercial LPG follows a ₹9.50 rise in September, even as rates had been cut sharply — by ₹192 per 19-kg cylinder in August and ₹183.50 in July. The rollercoaster traces back further: commercial LPG prices had surged to a record high in June amid disruptions to global energy supplies, with rates rising by ₹1,373 per cylinder between February and June — from ₹1,740.50 to ₹3,113.50 — before the July-August corrections brought partial relief to hotels, restaurants, and small businesses that rely on commercial cylinders.
Domestic LPG and Petrol-Diesel Left Unchanged
Household cooking gas prices remain untouched at ₹942 per cylinder. Domestic LPG had previously risen by ₹89 per cylinder between March and June, linked to West Asia supply disruptions and elevated global energy prices. Petrol and diesel prices, which were last revised in May, also remain unchanged. The government has consistently shielded household fuel from the volatility hitting commercial and aviation segments.
Why Prices Are Moving and What Drives the Revisions
OMCs revise ATF and LPG prices on the first day of every month, with adjustments benchmarked to international crude and LPG prices as well as the prevailing rupee-dollar exchange rate. Final pump prices vary across states due to local levies, including VAT. The October revision reflects a tightening in global energy markets after the July-August demand-driven correction had provided temporary relief.
Who Bears the Brunt
The commercial LPG hike directly affects the hospitality sector — dhabas, restaurants, canteens, and caterers — which purchase the 19-kg commercial cylinder rather than the subsidised domestic variant. For airlines, the ATF increase lands during a period when carriers are already managing post-monsoon load-factor pressures. Industry bodies are likely to flag the cumulative cost impact, given that ATF alone has risen over ₹21 per litre across the August-October window.
Point of View
Hotels, airlines — absorb global volatility in full, while household LPG and motor fuel consumers remain insulated by policy choice. That insulation has a fiscal cost that rarely surfaces in the headline revision numbers. For airlines, three straight ATF hikes totalling over ₹21 per litre in two months arrive at a delicate moment; carriers that locked in forward hedges at lower rates will report a lag, but unhedged mid-tier operators face immediate margin compression. The commercial LPG trajectory — from ₹1,740 in February to ₹3,113 by June, then cut sharply, now inching back up — suggests OMCs are calibrating recoveries carefully to avoid political optics, not purely tracking global markets.
NationPress
1 Oct 2026
Frequently Asked Questions
How much have commercial LPG prices changed from 1 October 2026?
Commercial LPG prices have been raised by ₹62.50 per 19-kg cylinder from 1 October 2026, following a ₹9.50 increase in September. This comes after steep cuts of ₹192 in August and ₹183.50 in July, which had partially reversed record-high prices seen in June.
What is the new ATF price for domestic airlines in October 2026?
Aviation turbine fuel now costs ₹137 per litre for domestic airlines, up from ₹121 per litre — a ₹16 per litre increase. This is the third consecutive monthly rise, following hikes of ₹6.28 per litre in September and ₹5 per litre in August.
Why does ATF pricing matter so much for airlines?
ATF accounts for up to 40% of an airline's total operating costs, making it the single largest variable expense. Three successive monthly increases mean carriers face sharply higher fuel bills, which can feed through to ticket prices or compress profit margins.
Are domestic LPG and petrol-diesel prices affected?
No. Domestic cooking gas remains unchanged at ₹942 per cylinder, and petrol and diesel prices — last revised in May — have also been left untouched. The October revisions apply only to commercial LPG and aviation turbine fuel.
How often are LPG and ATF prices revised, and what drives the changes?
OMCs revise ATF and LPG prices on the first day of every month, based on international benchmark prices and the rupee-dollar exchange rate. Final prices can differ across states because of varying local VAT levies applied on top of the base revision.
