Effective from 1 February 2026, state-run oil marketing companies (OMCs) have increased the price of 19 kg commercial liquefied petroleum gas (LPG) cylinders by ₹49, reported Hindustan Times.
This revision, which coincides with the presentation of the Union Budget 2026, raises the price of a commercial cylinder in Delhi to ₹1,740.50.
While the hike directly impacts the operational costs of the hospitality sector, including restaurants, hotels, and small eateries, domestic consumers have been spared.
The price of the 14.2 kg domestic LPG cylinder remains unchanged across the country, continuing a period of price stability for household kitchens that has lasted since April 2025.
Market Trends
This latest price adjustment follows a significant hike of ₹111 in January 2026, marking a challenging start to the year for commercial fuel users.
In the months leading up to these increases, the hospitality sector had seen some respite with six consecutive price reductions between April and December 2025.
However, the current upward trend, occurring exactly on the day Finance Minister Nirmala Sitharaman presents the annual fiscal plan, has drawn sharp attention from business owners.
The timing is particularly notable as it comes amidst a broader economic landscape where small and medium enterprises (SMEs) are closely monitoring government spending and tax policies.
Cost Drivers
Oil marketing companies, including Indian Oil Corporation (IOCL), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL), stated that the price revision is a result of monthly reviews based on international fuel benchmarks and currency fluctuations.
According to official data from the Petroleum Planning and Analysis Cell (PPAC), India imports approximately 60% of its LPG requirements, making domestic rates highly sensitive to the global market.
Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, has previously noted that while commercial prices are market determined, the government remains committed to protecting domestic users through subsidies.
Officials highlighted that there are currently over 33 crore domestic connections, including 10.41 crore under the Pradhan Mantri Ujjwala Yojana (PMUY), which continue to receive targeted support to ensure clean cooking fuel remains affordable for households.
The Logical Indian’s Perspective
At The Logical Indian, we believe that economic stability is the bedrock of social harmony and progress.
While we appreciate the government’s efforts to shield domestic households from global price volatility, the recurrent hikes in commercial LPG prices pose a silent threat to the livelihoods of street vendors and small restaurant owners.
These individuals often operate on razor thin margins and are the backbone of our local economies. Rapid escalations in input costs can lead to an inflationary ripple effect, making basic meals costlier for the common citizen.
We urge the government and policymakers to consider more sustainable mechanisms to stabilise energy costs for small businesses, ensuring that the spirit of entrepreneurship is not stifled by unpredictable overheads.
