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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 Rs 111 per cylinder applies only to commercial LPG cylinders, while domestic LPG prices remain unchanged, offering relief to households.
The price revision was implemented by the Indian Oil Corporation. The increase is expected to raise operating costs for hotels, restaurants, dhabas and catering businesses, and could lead to higher food prices in the coming weeks.
Following the hike, the price of a 19-kg commercial LPG cylinder in Delhi has risen to Rs 1,691.50 from Rs 1,580.50. This is the highest level since June 2025.
In Kolkata, the price has increased to Rs 1,795 from Rs 1,684. In Mumbai, the commercial LPG cylinder now costs Rs 1,642.50, compared with Rs 1,531.50 earlier. Chennai has seen one of the sharpest increases, with prices moving up to Rs 1,849.50 from Rs 1,739.50.
Oil industry data showed that the Rs 111 increase has reversed the modest price cuts seen in the last two months of 2025. Commercial LPG prices were reduced by Rs 10 in December and by Rs 5 in November in some cities. The latest hike has more than offset those reductions.
Hotels, restaurants, eateries and catering establishments widely use commercial LPG cylinders. As a result, the price increase is a concern for the food and hospitality industry at the start of the year. Higher fuel costs are expected to increase overall operating expenses for these businesses.
Industry watchers said the timing of the increase, on the first day of 2026, adds to concerns about rising input costs for small and medium-sized food businesses. Higher operating costs could eventually be passed on to consumers in the form of increased menu prices.
In contrast, domestic LPG prices have been kept unchanged. The price of a 14.2-kg domestic LPG cylinder in Delhi remains Rs 853, unchanged since its last revision on April 8, 2025.
In Mumbai, the domestic LPG price continues at Rs 852.50. Prices also remain stable at Rs 879 in Kolkata and Rs 868.50 in Chennai. Similar stability in domestic LPG prices has been reported across other major cities.