Commercial LPG Prices Hiked by ₹111 on New Year

The New Year brought a price shock for businesses as oil marketing companies hiked the rate of 19-kg commercial LPG cylinders by ₹111, the steepest increase in six months. While domestic household cylinder rates remain unchanged, this hike pushes commercial prices to ₹1,691.50 in Delhi. In contrast, aviation turbine fuel (ATF) prices saw a relief, getting slashed by 7.3%, offering some respite to the airline industry.

IN SHORTThe New Year brought a price shock for businesses as oil marketing companies hiked the rate of 19-kg commercial LPG cylinders by ₹111, the steepest increase in six months. While domestic household cylinder rates remain unchanged, this hike pushes commercial prices to ₹1,691.50 in Delhi. In contrast, aviation turbine fuel (ATF) prices saw a relief, getting slashed by 7.3%, offering some respite to the airline industry.

Businesses across India woke up to higher operational costs on New Year's Day as state-owned oil marketing companies announced a significant hike in commercial LPG prices. The cost of a 19-kg cylinder, widely used by restaurants and hotels, has been increased by ₹111. This marks the steepest hike since June of the previous year and reverses the trend of recent price cuts. In the national capital, a commercial cylinder will now cost ₹1,691.50.

While the commercial sector faces a pinch, the common household has been spared, with the price of the standard 14.2-kg domestic cylinder remaining unchanged. This disparity aims to shield the general voting populace from immediate inflationary pressure while adjusting commercial rates in line with international benchmarks. However, the ripple effect of the commercial hike could eventually lead to higher prices for food and services in the hospitality sector.

In a contrasting move, the aviation sector received a welcome gift with a sharp 7.3% cut in Aviation Turbine Fuel (ATF) prices. This reduction neutralizes a large portion of the hikes seen in late 2025 and is expected to lower operating costs for airlines, which spend nearly 40% of their budget on fuel. This balancing act by oil companies reflects the complex interplay of global oil trends and domestic economic management.