LPG Rate May 2026: Commercial cooking gas price crosses Rs 3,000 per cylinder mark! Domestic-use LPG refill rate unchanged

LPG Rates in May 2026: Commercial LPG retail prices in the country saw a sharp increase with effect from Friday, May 1, with state-run oil marketing companies (OMCs) undertaking a price revision. However, there was some respite for households as the three PSU OMCs -- Indian Oil Corp Ltd (IOCL), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) -- kept the domestic-use cooking gas refill prices steady at existing levels.

With the latest revision, commercial-use LPG will be sold at Rs 3,071.5 per 19 kg now, instead of the earlier Rs 2,078.50 per cylinder. In Mumbai, the revision takes the price to Rs 3,024 per cylinder from Rs 2,031.

Commercial LPG becomes expensive by nearly 50% in Delhi and Mumbai; price per cylinder crosses Rs 3,000

The latest revision takes the prices of commercial-use LPG -- sold in 19 kg cylinders -- higher by Rs 993 each in New Delhi and Mumbai, marking an increase of 47.8 per cent and 48.9 per cent, respectively.

In Kolkata, the May 2026 price stands at Rs 3,205 after the revision.

LPG Price Hike | Major cost shock for businesses

The sharp price revision is set to hit a range of businesses, like restaurants, hotels, cloud kitchens and factories -- categories considered non-essential by authorities. The jump of nearly 50 per cent will immediately add to the input costs of these businesses across the country.

With the spike recorded at nearly Rs 1,000 in metros, this also marks one of the biggest monthly hikes in LPG rates in recent history.

The increase is categorically set to pinch businesses that depend heavily on LPG, especially in the food and hospitality sector, instantly adding to their operating costs. This comes at a time when many local restaurants, eateries and cloud kitchens are already learned to have raised their prices to pass on any additional costs to the consumer.

The price increase comes amidst the ongoing disruptions in West Asia, where a war between US-based Israel and Iran has completed two months. On February 28, joint American-Israeli strikes against Tehran killed Iran's supreme leader and triggered Iran's retaliatory action in several parts of the Middle East, leaving the Strait of Hormuz effectively blocked.

The Indian government ramped up domestic energy supplies, diversified imports and prioritised household and essential supplies since to tackle the situation, urging citizens not to panic-book cooking gas refills and to only rely on official sources of information. Strict central and state-level action against hoarders, black-marketers and rumour mongers has ensured adequate supplies.

LPG Refill Becomes Expensive | Will businesses absorb losses or pass on costs to consumers?

With margins already tight, businesses like eateries and cloud kitchens are likely to increase their menu rates to protect their margins against rising input costs, say sources.

Fuel costs are a key input in daily operations for such businesses that rely heavily on LPG as fuel, and a sudden spike in rates disrupts their pricing strategies and eats into their profitability.

Traditionally, sharp increases in commercial LPG prices have led to gradual price hikes in food items, particularly in urban areas.

From thalis to takeaway meals, even a small increase in cost per dish can accumulate over time, businesses may not increase the rates immediately, say sources.

Relief for Households | But is the situation sustainable?

Concerns remain about the fate of domestic-use LPG rates going forward, thought the government has promised to protect the interests of consumers against disruptions in the Middle East.

However, higher costs for food businesses can indirectly seep into household budgets as they increase their retail rates.

The divergence between commercial and domestic LPG pricing highlights how policy adjustments are currently focused on shielding individual consumers, while shifting the burden towards businesses.

Commercial LPG Rates in Past 1 Year

Source: IOCL website

Domestic-use LPG rates per cylinder in May 2026

The prices are steady at the following levels:

• Delhi: Rs 913 per 14.2 cylinder
• Kolkata: Rs 939 per cylinder
• Mumbai: Rs 912.50 per cylinder
• Chennai: Rs 928.50 per cylinder