New Delhi, India — April 1, 2026
India is beginning to feel the economic impact of escalating tensions in West Asia, as state-run oil companies have sharply increased the price of commercial LPG cylinders. The latest revision has raised the cost of a 19 kg commercial cylinder by ₹195.50, adding pressure on businesses already dealing with rising input costs.
According to the new rates effective Wednesday, the price of a 19 kg commercial LPG cylinder in Delhi now stands at ₹2,078.50. This marks the second consecutive monthly hike, following an earlier increase of ₹114.50 on March 1.
Commercial LPG Prices Rise Again
The price hike comes amid ongoing geopolitical instability in West Asia, which has disrupted global energy supply chains and pushed crude oil prices higher. Commercial LPG cylinders—widely used by restaurants, hotels, and small businesses—are directly impacted by these global price movements.
Industry observers note that the cumulative increase over the past two months is likely to raise operational costs across multiple sectors, especially food services and small-scale enterprises.
No Change in Domestic LPG Rates
Despite the surge in commercial prices, there has been no change in domestic LPG cylinder rates. The 14.2 kg household cylinder continues to be priced at ₹913 in Delhi.
The last revision in domestic LPG prices was on March 7, when rates were increased by ₹60. The government appears to have held back further hikes in household cooking gas to cushion consumers from inflationary pressures.
How LPG Prices Are Determined
State-owned fuel retailers such as Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum revise LPG prices on the first of every month.
These revisions are based on international benchmark rates, foreign exchange fluctuations, and global energy market trends, making LPG prices sensitive to geopolitical developments.
Global Oil Prices Spike
The ongoing conflict in West Asia has triggered significant volatility in global oil markets, with prices reportedly rising by nearly 50% due to supply disruptions. This surge has had a cascading effect on LPG pricing worldwide, including in India.
Petrol and Diesel Prices Remain Stable
While LPG prices have increased, petrol and diesel rates remain unchanged. Fuel prices have been stable since March last year, when the government reduced rates by ₹2 per liter.
Currently, petrol in Delhi is priced at ₹94.72 per liter, while diesel costs ₹87.62 per liter.
Impact on Businesses
The latest hike in commercial LPG prices is expected to directly affect businesses such as restaurants, street vendors, and small manufacturing units. Higher fuel costs could lead to increased prices for goods and services, potentially impacting consumers in the coming weeks.
