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.

The post Commercial LPG Prices Hiked by Up to Rs 53.50 Per Cylinder from June 1 — Restaurants and Businesses Hit Hard appeared first on Daily Tips.

State-run oil marketing companies on Sunday, 25 May 2026, increased the retail prices of petrol and diesel for the fourth time in less than two weeks, pushing the price of petrol in New Delhi past the psychologically significant Rs 102 mark. Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited raised petrol prices by Rs 2.61 per litre and diesel prices by Rs 2.71 per litre across all metros, bringing the cumulative increase since 13 May to over Rs 7.50 per litre for both fuels.

Following Sunday’s revision, petrol in the national capital is now priced at Rs 102.12 per litre, up from Rs 99.51 before the latest hike. Diesel in Delhi has risen to Rs 95.20 per litre from Rs 92.49. Consumers in other major cities are paying even more, with petrol in Kolkata now at Rs 113.51 per litre, Mumbai at Rs 111.21 per litre and Chennai at Rs 107.85 per litre. The differential pricing reflects varying state taxes and value-added tax structures across India.

Why Are Fuel Prices Rising So Rapidly?

The rapid succession of price hikes — four in just thirteen days — is a direct consequence of the escalating West Asia crisis and its impact on global crude oil markets. International benchmark Brent crude has been trading above the 80-dollars-per-barrel mark for several weeks, driven by heightened tensions between the United States and Iran, supply disruptions in the Strait of Hormuz and reduced output from key OPEC producers. India, which imports approximately 85 per cent of its crude oil requirements, is particularly vulnerable to such price shocks.

Oil marketing companies had absorbed significant losses by keeping fuel prices unchanged between January and early May despite the sustained rally in global crude prices. Industry estimates suggest that IOCL, BPCL and HPCL collectively incurred under-recoveries of Rs 8,000 to Rs 10,000 crore during this period. The current round of hikes represents an attempt to close this gap, though analysts believe further increases may be necessary if global crude remains elevated.

The timing of the hikes is also linked to the shift in India’s crude oil sourcing patterns, with Venezuela recently overtaking Saudi Arabia as the country’s third-largest supplier. However, even diversified sourcing has been insufficient to fully insulate India from the broader market dynamics driven by Middle Eastern geopolitical uncertainty.

City-Wise Fuel Prices After Latest Revision

The price differential across Indian cities is substantial and reflects the complex tax structure that determines final retail fuel prices. While the central government levies excise duty on petrol and diesel, individual states impose their own value-added taxes, which vary considerably. Here is a snapshot of revised fuel prices in major metros as of 25 May 2026.

In Delhi, petrol is now Rs 102.12 per litre with diesel at Rs 95.20. Mumbai sees petrol at Rs 111.21 and diesel at Rs 97.85, the higher rates reflecting Maharashtra’s relatively steep state levies. Kolkata has the most expensive petrol among the four major metros at Rs 113.51, with diesel at Rs 99.82. Chennai rounds out the metro picture with petrol at Rs 107.85 and diesel at Rs 98.10 per litre.

These price levels represent multi-year highs for most Indian cities. The last time petrol crossed the Rs 100 mark in Delhi was during the global commodity spike of 2022, when international crude prices surged past 120 dollars per barrel following Russia’s invasion of Ukraine. The current breach of this psychological threshold, occurring at comparatively lower crude prices, highlights the limited fiscal space that oil marketing companies have to absorb losses in the current economic environment.

Impact on Inflation and Consumer Spending

Economists have warned that the cumulative fuel price increase of over Rs 7.50 per litre in under two weeks will have cascading effects on the broader economy. Transportation costs, which directly influence the prices of food, consumer goods and industrial inputs, are expected to rise in the coming weeks as logistics operators pass on higher fuel expenses to their customers.

The Reserve Bank of India’s recent record dividend to the government of Rs 2.87 lakh crore for FY26 provides some fiscal cushion, potentially allowing the Centre to consider a reduction in excise duty if prices continue to climb. However, any such decision would need to balance fiscal prudence with the political imperative of containing inflation ahead of several state assembly elections later this year.

Consumer sentiment has already been affected. Industry data shows that fuel consumption growth slowed to 2.1 per cent in April compared to a robust 5.8 per cent in January, suggesting that higher prices are beginning to dampen demand. The automobile sector is also watching closely, with Maruti Suzuki announcing price hikes of up to Rs 30,000 from June partly in response to rising input costs linked to elevated fuel prices.

What Lies Ahead for Fuel Prices

The trajectory of fuel prices in the coming weeks will depend largely on two factors: the evolution of the US-Iran standoff and OPEC’s production decisions at its next meeting in June. If diplomatic efforts, including the recently discussed 60-day truce framework, gain traction, crude prices could ease significantly, potentially halting or even reversing the domestic fuel price increases.

However, if tensions escalate further, particularly if shipping routes through the Strait of Hormuz face disruption, analysts warn that crude could spike towards the 100-dollars-per-barrel level, necessitating further domestic price corrections. In such a scenario, petrol prices in several Indian cities could approach or cross the Rs 120 mark, levels that would represent an unprecedented burden on household budgets.

For now, the government has signalled that it is monitoring the situation closely but has stopped short of committing to any intervention in the form of excise duty cuts. Finance Ministry officials have privately indicated that any decision will be guided by the average crude price over a sustained period rather than short-term fluctuations, suggesting that consumers should brace for the possibility of further hikes in the near term.

The previous round of hikes had already pushed the cumulative increase past Rs 5 per litre. With Sunday’s revision taking the total past Rs 7.50, the pressure on household budgets and business operating costs is intensifying rapidly.

Explore more: Economy | Business

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The post Petrol Diesel Prices Hiked for Fourth Time in 13 Days — Petrol Crosses Rs 102 in Delhi as Cumulative Rise Tops Rs 7.50 per Litre appeared first on Daily Tips.