The new year has begun on a costlier note for India’s food and hospitality sector. From January 1, 2026, prices of 19-kg commercial LPG cylinders have been hiked by Rs 111 across major cities, adding to operating pressure for hotels, restaurants, dhabas and catering businesses. Domestic LPG prices, however, remain unchanged, offering relief to households.
Commercial LPG Gets Costlier from January 1, 2026
The price revision has been implemented by Indian Oil Corporation, which revises LPG rates at the start of every month based on global fuel trends and other factors.
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The latest increase applies only to 19-kg commercial LPG cylinders widely used by eateries and commercial kitchens. With margins already tight, the hike is expected to push up overall input costs for food businesses at the very start of the year.
LPG Prices Today: Delhi, Mumbai, Kolkata, Chennai
After the Rs 111 hike, revised prices of 19-kg commercial LPG cylinders are:
- Delhi: Rs 1,691.50 (earlier Rs 1,580.50)
- Mumbai: Rs 1,642.50 (earlier Rs 1,531.50)
- Kolkata: Rs 1,795 (earlier Rs 1,684)
- Chennai: Rs 1,849.50 (earlier Rs 1,739.50)
In Delhi, the new rate is the highest since June 2025, highlighting the sharp turnaround after recent relief.
Recent Cuts Wiped Out
Oil industry data shows that the January hike has more than offset the modest reductions seen towards the end of last year. Commercial LPG prices were cut by around Rs 10 in December and Rs 5 in November in some cities. The Rs 111 jump has effectively erased those gains in one move.
What This Means for Restaurants and Consumers
Hotels, restaurants and catering services rely heavily on commercial LPG cylinders. Industry watchers say the timing—on the first day of 2026—adds to concerns around rising input costs for small and mid-sized food businesses. If fuel costs stay elevated, some of the burden may eventually be passed on to customers through higher menu prices in the coming weeks.
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Domestic LPG Prices Stay Put
In contrast, domestic LPG cylinder prices have been left untouched.
- Delhi: Rs 853 for a 14.2-kg cylinder
- Mumbai: Rs 852.50
- Kolkata: Rs 879
- Chennai: Rs 868.50
Domestic LPG rates have remained unchanged since April 8, 2025, providing continued relief to households amid broader inflation concerns.
The Bottom Line
While families won’t feel an immediate pinch, the hospitality sector is starting 2026 with higher fuel bills. How much of this translates into higher food prices will depend on how long commercial LPG rates stay elevated.
