Commercial LPG Cylinder Prices Hiked by ₹10 to ₹2,820 Following Import Cost Pressures

The price of a 19-kg commercial LPG cylinder has been increased by ₹10 to ₹2,820, effective from Sunday. The same cylinder was priced at ₹2,810 on October 1, bringing the total increase to ₹10 over the past month across metros, taking the Delhi rate to ₹2,820.

This adjustment marks the third consecutive monthly increase in commercial gas rates. The ongoing upward trend has presented financial challenges for the hospitality sector, eateries, and commercial vendors, coinciding directly with the peak festive season. Meanwhile, the price of a 5-kg Free Trade LPG (FTL) cylinder for a new connection is set at ₹1,903, while a 5-kg FTL refill is priced at ₹782 according to the revised rate list.

The broader LPG price landscape throughout 2026 has experienced significant volatility driven by external geopolitical shocks. Prices saw a sharp single-month surge of nearly ₹1,000 per cylinder on May 1, pushing commercial LPG rates above the ₹3,000 mark to approximately ₹3,071.50 in Delhi. Relief followed in July and August when oil marketing companies announced cumulative cuts totalling ₹380 per cylinder, providing respite to commercial consumers during mid-summer. However, this trend reversed during the festive period following marginal upward adjustments on September 1 and a ₹65 per cylinder hike on October 1.

Industry projections indicate that LPG under-recovery may rise to ₹370 per cylinder in December 2026. Elevated gas and fuel import costs throughout the year are largely attributed to escalating tensions and naval disruptions in the Strait of Hormuz, a critical maritime choke point for Middle Eastern crude and liquefied petroleum gas shipments.

India remains dependent on imports for roughly half of its natural gas and LPG consumption, with a substantial share originating from Gulf producers that transit through the Strait. Operational bottlenecks and heightened security risks in the area earlier in the year caused a contraction in global LPG supply, resulting in freight spikes. These higher shipping risk premiums, alongside global crude volatility with Brent hovering above $110 per barrel and elevated international Saudi Aramco contract prices, have maintained pressure on domestic commercial fuel rates despite minor month-on-month adjustments.

"The consecutive monthly hikes in commercial LPG prices present an operational hurdle for small businesses, eateries, and the broader hospitality sector during a crucial revenue period. When input costs such as commercial fuel experience sustained volatility driven by global supply chain disruptions and import dependencies, businesses must closely monitor their operational margins and budget carefully to absorb these macroeconomic fluctuations." — Dr. Shishir Gupta, Founder & CEO, StartupLanes