Commercial LPG Prices Jump by Rs 111, Hospitality Sector Faces Fresh Cost Pressure

New Delhi, Jan 2026 : Commercial cooking gas prices have risen sharply at the very start of the new month, adding to the financial strain on hotels, restaurants, caterers and other food-related businesses that rely heavily on liquefied petroleum gas (LPG) for their daily operations. Public sector oil marketing companies (OMCs) have increased the price of a 19-kg commercial LPG cylinder by Rs 111 across major cities, reversing much of the relief provided through a series of cuts in recent months.

In the national capital, Delhi, the price of a 19-kg commercial LPG cylinder has climbed to Rs 1,691.50. Mumbai has recorded a similar hike, with prices rising from Rs 1,531.50 to Rs 1,642.50 per cylinder. Kolkata has also seen an increase, with rates moving up from Rs 1,684 to Rs 1,795. Chennai has reported the steepest rise among the metropolitan cities, where commercial LPG now costs Rs 1,849.50 per cylinder, compared to Rs 1,739.50 earlier.

The sudden hike is expected to significantly raise operating costs for the hospitality sector, including hotels, restaurants, roadside eateries, bakeries and catering services. Many businesses were still adjusting to fluctuating fuel prices over the past year, and industry players fear that the fresh increase could further squeeze already thin margins. Several restaurant owners have warned that if high input costs persist, the burden may eventually be passed on to consumers in the form of higher food prices.

In contrast, domestic households have been spared from the latest revision, as prices of household LPG cylinders remain unchanged. This decision provides some relief to families and ensures that, for now, the impact of the hike is limited to commercial users.

The previous revision in commercial LPG prices took place on December 1, 2025, when oil companies had reduced rates by Rs 10 per cylinder. At that time, the price in Delhi had come down to Rs 1,580.50. That reduction followed another marginal cut of Rs 5 in November, which had partially offset a Rs 15.50 increase introduced in October.

Between April and November 2025, commercial LPG prices witnessed multiple downward revisions. In total, six price cuts during this period had reduced the cost by Rs 223 per cylinder, offering much-needed relief to businesses dependent on commercial cooking gas. The latest hike, however, has wiped out a substantial portion of those gains in a single move.

Prices of LPG and aviation turbine fuel are revised on the first day of every month by public sector OMCs such as Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited. These monthly adjustments are influenced by international fuel price trends and fluctuations in foreign exchange rates, making commercial fuel costs highly sensitive to global market movements.

Team Maverick.