Commercial LPG cylinder prices have been increased by Rs 42 to Rs 53.50 per cylinder across major Indian cities, effective from 1 June 2026, according to oil marketing companies. The price revision applies to 19-kg commercial cylinders used by hotels, restaurants, canteens, and businesses — not to domestic cooking gas cylinders, which remain unchanged.

In Delhi, the price of a 19-kg commercial LPG cylinder has risen by Rs 42, taking the retail price to Rs 3,113.50. Kolkata sees the steepest increase at Rs 53.50, pushing the price to Rs 3,255.50. In Mumbai and Chennai, prices have risen by Rs 44 and Rs 49 respectively, according to news agency ANI.

City-Wise Breakdown of New Commercial LPG Prices

The revised prices paint a picture of varying impacts across the country. Delhi’s new price of Rs 3,113.50 represents a 1.4 percent increase from the previous month. Mumbai’s commercial cylinder now costs Rs 3,031, while Chennai’s price stands at Rs 3,389.50 — the highest among metro cities due to higher state-level taxes and transportation costs.

Kolkata’s Rs 53.50 increase — the sharpest in absolute terms — takes the price to Rs 3,255.50. Industry observers note that the differential pricing across cities reflects variations in local taxes, freight charges, and dealer commissions rather than differences in base product cost.

The 5-kg Free Trade LPG cylinder, commonly used by small eateries and street food vendors, has also seen a price increase, though the exact quantum varies by city. This smaller format is particularly important for the street food economy, where margins are already razor-thin.

Why Commercial LPG Prices Are Rising

The price hike comes amid several converging pressures on global energy markets. The ongoing Strait of Hormuz crisis has disrupted oil and gas supply chains, adding a significant risk premium to energy commodities. Saudi Aramco’s official selling prices for June have also been revised upward, reflecting tighter global supply conditions.

Commercial LPG prices in India are revised monthly based on the trailing average of international benchmark Saudi CP (Contract Price) for propane and butane. The Saudi CP for propane rose to $615 per metric tonne in May, up from $590 in April, while butane prices climbed to $620 from $595. These increases directly feed into the domestic commercial LPG pricing formula.

Additionally, the weakening of the Indian rupee against the US dollar — currently hovering around 87.65 — has added to the import bill. India imports roughly 60 percent of its LPG requirement, making the domestic market highly sensitive to both global price movements and currency fluctuations.

Impact on Restaurants and Food Businesses

The restaurant and hospitality industry, still recovering from pandemic-era disruptions and recent food inflation, has expressed concern over the latest increase. The National Restaurant Association of India (NRAI) estimates that LPG costs account for 3–5 percent of total operating expenses for a typical restaurant, but the cumulative effect of repeated hikes over the past year has pushed that figure higher for smaller establishments.

“Every Rs 50 increase on a commercial cylinder might seem small, but a mid-sized restaurant uses 15–20 cylinders per month. That’s an additional Rs 750–1,000 monthly, and these costs compound over the year,” said Anurag Katriar, a prominent restaurateur and former NRAI president. “At some point, this has to be passed on to consumers through higher menu prices.”

Street food vendors and small dhabas, which operate on even thinner margins, are disproportionately affected. Many of these businesses lack the pricing power to raise menu prices without losing customers. Industry groups have called on the government to consider subsidising commercial LPG for small food businesses, similar to the Ujjwala scheme for household consumers.

Domestic Cylinders Untouched — For Now

In a relief for household consumers, the price of 14.2-kg domestic LPG cylinders remains unchanged. The government has kept domestic cylinder prices stable since early 2024 through a combination of subsidies and absorption of costs by oil marketing companies.

However, analysts warn that the divergence between commercial and domestic prices cannot be sustained indefinitely. “The spread between commercial and subsidised domestic LPG is now one of the widest it has ever been,” noted K. Ravichandran, senior vice president at ICRA. “Either domestic prices will need to adjust upward, or oil marketing companies will start reporting losses on their LPG segment.”

The political sensitivity of domestic LPG prices — especially with several state elections on the horizon — makes any increase unlikely in the near term. The Pradhan Mantri Ujjwala Yojana, which provides subsidised connections to below-poverty-line households, remains a flagship government programme that no ruling party wants to dilute.

Historical Context and Cumulative Impact

Commercial LPG prices have risen significantly over the past 18 months. In January 2025, a 19-kg commercial cylinder in Delhi cost approximately Rs 2,700. The current price of Rs 3,113.50 represents a cumulative increase of over Rs 400, or roughly 15 percent, in that period.

The sharpest increases came during the first quarter of 2026, coinciding with the Hormuz crisis and the broader disruption to Middle Eastern energy flows. While the temporary ceasefire in April-May provided some respite, the latest geopolitical developments suggest that energy prices may remain elevated for the foreseeable future.

What Consumers and Businesses Can Do

Energy consultants recommend that commercial LPG users explore energy efficiency measures to offset rising costs. Investing in energy-efficient burners, which can reduce LPG consumption by 15–20 percent, is one practical step. Larger establishments might also consider transitioning partially to piped natural gas (PNG) where available, as PNG prices tend to be more stable and are currently cheaper than LPG on a per-unit energy basis.

For the broader Indian economy, the commercial LPG hike is one more data point in the inflation puzzle that the Reserve Bank of India is closely monitoring. With food inflation already elevated and energy costs creeping up, the trajectory of prices in the coming months will be critical for both monetary policy decisions and household budgets.

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The cumulative impact of recent CNG revisions has been substantial. Following a Rs 2 per kg hike on May 15, a Rs 1 per kg increase on May 17, and another Rs 1 per kg rise on May 23, today’s Rs 2 per kg jump means CNG prices have risen by a total of Rs 6 per kg in just 11 days. For context, CNG in Delhi was priced at around Rs 77 per kg at the beginning of May — a nearly 8% increase in less than a month.

NCR Cities Hit Even Harder

While Delhi residents are feeling the pinch, CNG consumers in neighbouring NCR cities are paying even more. The latest revision has pushed prices in Noida, Greater Noida, and Ghaziabad to Rs 91.70 per kg — nearly Rs 9 higher than in Delhi. In Gurugram, CNG now costs Rs 86.12 per kg, while Faridabad consumers pay Rs 89.30 per kg. Mumbai, India’s other major CNG market, has seen prices rise to Rs 81 per kg, though the city has been somewhat insulated by its proximity to domestic gas supply infrastructure.

Why Are CNG Prices Rising So Fast?

The primary driver behind the relentless CNG price increases is the ongoing US-Iran conflict, which began in February 2026 and has severely disrupted global energy supply chains. The closure of the Strait of Hormuz — through which approximately 20% of the world’s oil and a significant portion of liquefied natural gas (LNG) passes — has choked supply and sent international gas prices spiralling.

India imports approximately 50% of its natural gas requirements, and the LNG spot market has seen prices surge from around $10-12 per million British thermal units (mmBtu) at the start of the year to over $18-20 per mmBtu in recent weeks. This dramatic increase has forced city gas distributors like IGL, Mahanagar Gas Limited (MGL), and Adani Total Gas to raise retail prices to avoid mounting losses.

“The city gas distribution companies have been absorbing a significant portion of the cost increase, but the gap between procurement costs and retail prices has become unsustainable,” said K. Ravichandran, Senior Vice President at ICRA. “We expect further price adjustments in the coming weeks unless there is a material easing in international gas prices.”

Impact on Public Transport and Daily Commuters

The CNG price hikes are having a cascading effect on public transport costs in Delhi-NCR. Auto-rickshaws, which are the lifeline of short-distance commuting for millions, run almost exclusively on CNG. The Delhi government’s current auto fare structure was set when CNG prices were significantly lower, and drivers have been demanding a fare revision for months.

“Every rupee increase in CNG costs us Rs 400-500 extra per month,” said Rajendra Kumar, an auto-rickshaw driver in South Delhi who has been operating for 15 years. “With Rs 6 increase in just 11 days, our monthly fuel bill has gone up by Rs 2,500-3,000. We can’t keep absorbing this — passengers need to pay more or the government needs to step in.”

The Delhi Auto-Taxi Transport Congress Union has already submitted a memorandum to the Delhi government demanding an immediate revision of fare meters. Similar demands are being raised in Noida and Gurugram, where auto and cab operators say the current fares don’t cover their operating costs.

The situation is equally challenging for ride-hailing platforms like Ola and Uber, where many driver-partners operate CNG vehicles. Industry sources indicate that both platforms are considering implementing fuel surcharges to offset the increased costs, a move that would directly impact consumer fares.

Petrol and Diesel Also on the Rise

The CNG price hike comes alongside a broader increase in fuel costs across the board. Petrol prices in Delhi have crossed Rs 102 per litre after four hikes in 13 days, while diesel has seen similar increases. Telangana has emerged as the state with the costliest petrol, with BRS Deputy Floor Leader T. Harish Rao writing an open letter to Chief Minister Revanth Reddy demanding an immediate reduction in state VAT on fuel.

The cumulative impact of rising fuel prices — across petrol, diesel, and CNG — is contributing to broader inflationary pressures. Transporters have warned of potential freight rate increases, which would raise the cost of essential commodities including food, FMCG products, and construction materials.

Government Response and Outlook

The central government has so far refrained from direct intervention in CNG pricing, which is largely determined by market forces and the pricing formula set by the Petroleum and Natural Gas Regulatory Board (PNGRB). However, petroleum ministry officials have indicated that the government is “closely monitoring the situation” and could consider temporary excise duty relief if prices continue to rise sharply.

Looking ahead, analysts see limited scope for price relief in the near term. The Iran situation remains volatile, with the US renewing strikes over the weekend even as diplomatic channels remain open. Until there is a meaningful de-escalation and the Strait of Hormuz reopens to commercial shipping, international gas prices are likely to remain elevated.

“We’re in uncharted territory for Indian energy consumers,” said Debasish Mishra, Partner at Deloitte India. “The combination of a major geopolitical disruption, high import dependence, and the onset of peak summer demand has created a perfect storm. Consumers should brace for continued price volatility.”

For the millions of Delhi-NCR residents who switched to CNG as a cleaner and cheaper alternative to petrol and diesel, the rapid price escalation is eroding the economic advantage that made the fuel so popular. Whether the government intervenes to provide relief — or whether consumers simply absorb the higher costs — remains to be seen.

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