The new year has begun on a costlier note for India’s hospitality and services sector, with prices of 19-kg commercial LPG cylinders raised by ₹111 across major cities from January 1, 2026. The increase applies exclusively to commercial cylinders, while domestic LPG prices remain unchanged, offering relief to households.
The revision, implemented by Indian Oil Corporation (IOC), is expected to push up operating costs for hotels, restaurants, dhabas, and catering units. Industry participants warn that the higher fuel expense could eventually be passed on to consumers in the form of increased food prices.
Commercial LPG prices across metros
Following the hike, the price of a 19-kg commercial LPG cylinder in Delhi has climbed to ₹1,691.50, up from ₹1,580.50, marking the highest level since June 2025.
In Mumbai, prices rose to ₹1,642.50 from ₹1,531.50, while Kolkata saw rates jump to ₹1,795 from ₹1,684. Chennai recorded one of the steepest increases, with prices rising to ₹1,849.50 from ₹1,739.50.
| City | Old Price (₹) | New Price (₹) | Increase (₹) |
|---|---|---|---|
| Delhi | 1,580.50 | 1,691.50 | +111 |
| Mumbai | 1,531.50 | 1,642.50 | +111 |
| Kolkata | 1,684.00 | 1,795.00 | +111 |
| Chennai | 1,739.50 | 1,849.50 | +110 |
Oil industry data indicate that the latest hike has reversed the marginal price cuts seen towards the end of 2025, when commercial LPG prices were reduced by ₹10 in December and ₹5 in November in select cities.
Impact on hospitality sector
Commercial LPG is a key input for the food and hospitality industry. Business owners caution that the sharp increase at the very start of 2026 could strain margins, especially for small and medium-sized eateries already grappling with rising raw material and labour costs.
Domestic LPG prices unchanged
In contrast, domestic LPG cylinder prices have been left untouched. A 14.2-kg domestic cylinder continues to cost ₹853 in Delhi, unchanged since April 8, 2025. Prices also remain steady at ₹852.50 in Mumbai, ₹879 in Kolkata, and ₹868.50 in Chennai, with similar stability across other cities, offering continued relief to households.
✅ Explainer
What changed?
Commercial LPG cylinder prices rose by ₹111 from January 1, 2026.
Who is affected?
Hotels, restaurants, dhabas, caterers, and food businesses.
Who is not affected?
Households — domestic LPG prices remain unchanged.
Why it matters
Higher cooking fuel costs could lead to costlier meals and catering services in the coming weeks.
