In a major development affecting businesses, the central government has announced a significant hike in commercial LPG cylinder prices. While domestic LPG rates remain unchanged to provide relief to households, a 19-kg commercial cylinder has seen an average price increase of Rs 993.
Impact on Businesses and Dining Costs
This is the third price increase for commercial LPG since February 28, following the escalation of the Iran crisis. Commercial rates in major cities have been adjusted sharply:
- Delhi: Prices have jumped to Rs 3,071.50, up from Rs 2,078.50.
- Mumbai: Prices have been raised to Rs 3,024, from the previous Rs 2,031.
This triple-hike strategy is expected to put considerable pressure on the hospitality sector. Restaurants, eateries, and delivery businesses rely heavily on cooking fuel, and industry experts suggest these costs will likely be passed on to consumers, potentially making dining out and food delivery services more expensive.
New Booking Rules for Domestic LPG (Effective May 1, 2026)
Alongside the price adjustments, India’s three major oil marketing companies—Indian Oil (Indane), Bharat Petroleum (Bharat Gas), and Hindustan Petroleum (HP Gas)—have implemented new protocols for domestic LPG refills.
- Booking Interval: The time gap between two consecutive cylinder bookings has been increased. In urban areas, you must wait 25 days (up from 21 days), while in rural areas, this interval is now up to 45 days. The system will automatically block any booking attempted before this window expires.
- Delivery Authentication Code (DAC): The process is now more secure and non-negotiable. Customers will no longer receive a delivery by showing a physical receipt or “blue book.” Instead, a mandatory OTP will be sent to the customer’s registered mobile number, which must be provided to the delivery person to complete the transaction.
Current Fuel Price Outlook
While petrol and diesel retail prices remain unchanged, the situation for oil marketing companies (OMCs) is becoming increasingly strained. OMCs are currently absorbing substantial losses as they purchase crude oil at elevated global rates (over $120 per barrel) while selling at stable domestic prices.
While the government continues to shield the public from these fuel shocks, OMCs are reportedly in talks with the Centre to explore compensation strategies, as the current model of absorbing losses is becoming difficult to sustain in the face of the ongoing Middle East conflict.
[Table of Domestic LPG Prices (14.2 Kg) Across Major Indian Cities]
| City | Price (Rs) |
| Delhi | 913.00 |
| Mumbai | 912.50 |
| Kolkata | 939.00 |
| Chennai | 928.50 |
| Bengaluru | 915.50 |
| Hyderabad | 965.00 |