As of January 1, 2026, key cities in India have seen price increases for 19-kg commercial LPG cylinders, which has resulted in increased fuel expenses for the country’s hospitality and services industry. Only commercial cylinders are subject to the ₹111 per cylinder increase; home LPG rates remain constant, providing families with some respite.
Impact of the LPG Price Hike
The change, which was put into effect by Indian Oil Corporation, is anticipated to increase operational expenses for lodging facilities, eateries, dhabas, and catering companies, which might result in increased food prices in the next weeks.
New Tariffs for Commercial LPG in Metro Areas
A 19-kg commercial LPG cylinder in Delhi now costs ₹1,691.50, up from ₹1,580.50, the highest amount since June 2025. Prices have increased from ₹1,684 to ₹1,795 in Kolkata and from ₹1,531.50 to ₹1,642.50 in Mumbai. With prices rising from ₹1,739.50 to ₹1,849.50, Chennai has seen one of the biggest price rises.
According to statistics from the oil sector, the ₹111 increase has essentially undone the small reductions in commercial LPG pricing that occurred late last year. In some places, these reductions were ₹10 in December and ₹5 in November.
Impact on Hotels and Restaurants
Since hotels, restaurants, cafes, and catering businesses often utilize commercial LPG cylinders, the rise at the beginning of the year is concerning for the food and hospitality sector. Owners of businesses caution that rising gasoline prices might result in higher menu pricing, which would impact customers who are already dealing with more general cost concerns.
The timing, on the first day of 2026, raises worries about growing input prices for small and medium-sized food enterprises, according to industry observers.
Domestic LPG Prices Remain Stable
On the other hand, home LPG cylinder costs have remained stable, which has helped families. Since its most recent modification on April 8, 2025, the cost of a 14.2-kg household LPG cylinder in Delhi has remained at ₹853. At ₹852.50 in Mumbai, ₹879 in Kolkata, and ₹868.50 in Chennai, prices are likewise steady. Similar consistency has been seen in other major cities.
