Commercial LPG Price Hike: Impact on Businesses & Steady Fuel Costs – May 2024

State-owned oil marketing companies increased the prices of commercial LPG cylinders on May 1, 2026, raising operating costs for businesses in the hospitality and catering sectors. The price of a 19-kg commercial LPG cylinder was raised by ₹111 nationwide.

In Delhi, the retail price for the 19-kg cylinder rose to ₹1,691.50 from ₹1,580.50. In Mumbai, the price increased from ₹1,531.50 to ₹1,642.50, while Kolkata’s rate climbed from ₹1,684 to ₹1,795. Chennai recorded a price increase from ₹1,739.50 to ₹1,849.50.

the price of 5-kg free trade LPG (FTL) cylinders was increased by ₹27 on May 1, 2026.

Fuel Price Stability for Consumers

While commercial rates rose, retail prices for petrol, diesel, and domestic LPG cylinders remained unchanged. IndianOil (IOC) stated that there has been no rate revision in key fuels affecting the general public to insulate consumers from international price volatility.

Domestic LPG cylinders (14.2 kg), used by approximately 33 crore consumers, remained at ₹853. This price has been steady since a ₹50 increase occurred in April 2025. Prices for kerosene distributed under the public distribution system (PDS) also remained unchanged.

According to IOC, approximately 80 per cent of petroleum products saw no price change on May 1, 2026. The company noted that price revisions were limited to select industrial segments, including bulk and commercial LPG cylinders, which account for less than 1 per cent of total consumption.

Aviation Turbine Fuel Adjustments

Aviation turbine fuel (ATF) prices for domestic airlines remained unchanged on May 1, 2026. IndianOil indicated that state-owned oil companies decided to absorb the rise in global fuel prices to protect airlines, and consumers.

However, IOC reported that prices for ATF used in international airline operations were increased. This follows a previous reduction in ATF prices on January 1, 2026. In Delhi, that January reduction saw ATF prices drop from ₹864.35 to ₹791.48 per kilolitre.

Market Context and Trends

The May 1 increase reverses a period of moderation for commercial LPG. Since April 2025, commercial cylinder rates had undergone six reductions, resulting in a cumulative cut of ₹223 per cylinder, including rollbacks in November and December.

Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum revise LPG and ATF prices on the first day of every month. These adjustments are based on international fuel prices and currency movements.

The current hike is expected to impact operating expenses for hotels, restaurants, and other service providers that rely heavily on cooking gas, particularly after the relief provided by the price reductions seen in the preceding months.