The New Year has opened with a sharp increase in cooking fuel costs for India’s hospitality and services sector, as prices of commercial liquefied petroleum gas (LPG) cylinders have been increased by ₹111 from 1 January 2026. However, the price of aviation turbine fuel (ATF), also known as jet fuel, is reduced by 7.3%, providing much-needed relief to the aviation sector.
State-owned oil marketing companies (OMCs) implemented the hike as part of their monthly fuel price revision, pushing the price of a 19-kg commercial LPG cylinder in Delhi to ₹1,691.50. The increase applies only to commercial cylinders used by hotels, restaurants, dhabas and catering businesses, while household LPG prices have been left unchanged.
The steep hike is likely to add to operating costs at a time when food businesses are already grappling with rising input expenses. The increase could eventually be passed on to consumers through higher menu prices in the coming weeks.
Commercial LPG prices rose sharply across major cities. In Mumbai, the cost of a 19-kg cylinder increased to ₹1,642.50, while in Kolkata, prices climbed to ₹1,795. Chennai recorded one of the highest rates at ₹1,849.50 per cylinder. With this revision, commercial LPG prices have reached their highest level since June last year.
The latest hike has effectively wiped out the modest reductions seen towards the end of 2025, when prices were cut marginally in November and December. Oil industry data indicate that rising global LPG prices, driven by higher winter heating demand, have pushed up costs, despite some moderation in crude oil prices.
In contrast, domestic LPG prices remained stable, providing relief to households at the start of the year. The price of a 14.2-kg domestic cylinder continues to stand at ₹853 in Delhi, unchanged since April 2025. Similar stability has been maintained in other metros, including Mumbai, Kolkata and Chennai.
Alongside the LPG revision, ATF prices have been reduced sharply, offering relief to airlines. Jet fuel prices were cut by 7.3%, easing cost pressures in the aviation sector, where fuel accounts for a large share of operating expenses.
State-owned Indian Oil Corporation Ltd (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise LPG and ATF prices on the first day of every month, in line with global benchmarks and currency movements. While transport fuels such as petrol and diesel remain frozen, the sharp rise in commercial LPG prices has added to cost concerns for businesses entering the New Year.
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