The new year has begun with higher fuel costs for India’s hospitality and services sector, as prices of 19-kg commercial LPG cylinders were increased across major cities from January 1, 2026. The hike of ₹111 per cylinder applies only to commercial cylinders, leaving domestic LPG prices unchanged and offering partial relief to households.
The revision, implemented by Indian Oil Corporation, is expected to raise operating costs for hotels, restaurants, dhabas and catering businesses, potentially feeding through to higher food prices in the coming weeks.
New commercial LPG rates across metros
Following the increase, the price of a 19-kg commercial LPG cylinder in Delhi has climbed to ₹1,691.50, up from ₹1,580.50, marking its highest level since June 2025.
In Kolkata, prices have risen from ₹1,684 to ₹1,795, while in Mumbai, the cylinder now costs ₹1,642.50, compared with ₹1,531.50 earlier.
Chennai has seen one of the sharpest increases, with prices moving up from ₹1,739.50 to ₹1,849.50.
Oil industry data show that the ₹111 hike has effectively reversed the modest cuts seen late last year, when commercial LPG prices were reduced by ₹10 in December and ₹5 in November in some cities.
Blow for hotels and restaurants
Commercial LPG cylinders are widely used by hotels, restaurants, eateries and catering establishments, making the increase a concern for the food and hospitality industry at the start of the year. Business owners warn that higher fuel costs could translate into increased menu prices, affecting consumers already facing broader cost pressures.
Industry watchers note that the timing—on the very first day of 2026—adds to concerns about rising input costs for small and medium-sized food businesses.
In contrast, domestic LPG cylinder prices have been kept steady, providing relief to households. The price of a 14.2-kg domestic LPG cylinder in Delhi remains ₹853, unchanged since its last revision on April 8, 2025. Prices also remain stable at ₹852.50 in Mumbai, ₹879 in Kolkata, and ₹868.50 in Chennai, with similar stability reported across other major cities.
