Flames of inflation: Commercial LPG sees massive price leap

In a move that reflects the tremor of a restless global energy market, the Centre on May 1, 2026, announced a steep increase in the price of commercial LPG cylinders. The price of a 19 kg commercial cylinder has been raised by ₹993 across the country marking one of the sharpest single hikes in recent years.

This sudden escalation comes against the backdrop of an ongoing global energy crisis, driven largely by geopolitical tensions and disruptions in oil supply chains. Rising crude oil prices reportedly crossing $100 per barrel have significantly pushed up fuel costs worldwide, with India now feeling the ripple effects.  

Following the revision, the cost of a commercial LPG cylinder in Delhi now stands at approximately Rs.3,071.50 a notable jump from the previous jump which was around Rs.2078.50. The increase is part of the monthly price adjustment carried out by oil marketing companies, but it’s magnitude has made it stand out as the steepest rise so far.

Interestingly while commercial users face the surge, domestic LPG cylinder prices used for households for cooking have been left unchanged. The move appears aimed at shielding ordinary consumers from the immediate burden of rising fuel costs.

However, the impact on businesses is expected to be significant. Commercial LPG is widely used in hotels, restaurants, catering services and small food establishments. With input costs rising sharply, there are growing concerns that the price of meals and services may also increase, indirectly affecting customers.
Anjan Chatterjee, founder of Speciality Restaurants, painted a grim picture of the stress building across the sector. Speaking to the Times of India, Chatterjee had said earlier restaurant owners were "running from pillar to post" as uncertainty deepened around supplies and operating costs. He warned that the fallout would not stop at businesses alone, but would quickly filter down to workers at the bottom of the chain. "If restaurants and eateries are unable to do business, the first ones to hit will be people down below," he told ET as quoted by Times of India.

The  latest hike also marks the third consecutive monthly increase in commercial LPG prices, highlighting a continuing upward trend linked to volatile international markets. 
In essence, the decision captures a larger reality: India’s energy pricing remains deeply intertwined with the global developments. As international tensions persists and fuel markets remain unpredictable, the cost if essential commodities like LPG may continue to sway with forces far beyond national borders.