Key Takeaways:
- Commercial LPG prices rose across India on Monday, with a 19-kg cylinder hitting ₹3,113.50 in Delhi.
- Driven by the ongoing Iran conflict, Delhi rates have nearly doubled since January’s ₹1,691.50.
- The Petroleum Ministry ordered state retailers to build a 30-day emergency LPG stock buffer.
Commercial LPG prices increased across India on Monday, with a 19-kg cylinder becoming costlier by Rs 42 in Delhi and Rs 53.50 in Kolkata, as supply disruptions linked to the Iran conflict continue to push global energy prices higher.
Commercial users, including restaurants, hotels and catering businesses, face mounting operational costs after the latest revision. The retail price of a 19-kg commercial LPG cylinder now stands at Rs 3,113.50 in Delhi and Rs 3,255.50 in Kolkata. Domestic LPG cylinder prices remain unchanged.
Commercial LPG Prices Continue Sharp Rise
The latest increase marks another step in a sustained rise in commercial cooking gas prices this year. In Delhi, the price of a 19-kg commercial LPG cylinder has climbed from Rs 1,691.50 in January to Rs 3,113.50 as of June 1.
Oil companies have revised prices multiple times since the beginning of the year. Rates increased by Rs 49 in February and Rs 115 in March before a sharp jump of Rs 993 in April. Prices remained elevated through May and rose again in June.
The increase has nearly doubled commercial LPG costs within five months, placing additional pressure on businesses that rely heavily on cooking fuel.
“The combined rise in fuel expenses is significantly affecting operating margins,” said a Delhi-based restaurant owner, who requested anonymity because of business sensitivities. “Many businesses are evaluating whether to absorb costs or adjust menu prices.”
Prices also increased for 5-kg Free Trade LPG cylinders. In Delhi, the revised rate is Rs 821.50, up by Rs 11.
Global Supply Disruptions Push Energy Costs Higher
Industry officials attribute the increase to ongoing disruptions in global energy markets caused by tensions in the Middle East, particularly involving Iran and the Gulf region.
India imports a substantial portion of its LPG, crude oil and natural gas requirements from Gulf nations. Supply constraints and higher international prices have made LPG procurement more expensive for commercial consumers.
“The international LPG market remains under pressure due to geopolitical uncertainty and supply concerns,” an energy market analyst said. “Import-dependent countries such as India are particularly vulnerable to these fluctuations.”
The price increase comes amid broader fuel inflation. Compressed Natural Gas prices in Delhi and neighbouring cities recently rose by Rs 2 per kilogram, bringing the rate to Rs 83.09 per kg. Petrol and diesel prices have also increased in recent weeks as oil marketing companies pass on higher crude oil costs.
Government Seeks Larger Fuel Reserves
The federal government is taking steps to strengthen energy security and reduce the impact of future disruptions.
The Petroleum Ministry has directed state-owned fuel retailers, Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation, to develop plans to maintain LPG stocks sufficient for at least 30 days of demand.
Officials say the initiative is intended to improve supply resilience during periods of international market volatility. The government is also exploring measures to expand crude oil storage capacity.
Commercial LPG prices vary across major cities. A 19-kg cylinder now costs Rs 3,024.50 in Mumbai, Rs 3,232 in Chennai, Rs 3,294 in Hyderabad and Rs 3,322 in Patna.
Economists warn that higher fuel costs could contribute to broader inflationary pressures if businesses pass on increased expenses to consumers. Restaurants, hotels, food delivery kitchens and caterers are among the sectors expected to feel the strongest impact.
With global energy markets remaining volatile and geopolitical tensions unresolved, analysts say commercial fuel prices could stay elevated in the coming months.
