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Commercial LPG prices hiked by around ₹10 per cylinder, aviation fuel by ₹6.28/litre

Key Highlights & Quick Takeaways

  • In Mumbai, they cost ₹2,701 per cylinder following a similar hike.
  • In Mumbai, they cost ₹2,701 per cylinder following a ₹9.5 hike.
  • This was after prices had spiralled upwards cumulatively by about ₹1,345 per cylinder across four tranches at the peak of the West Asia crisis.

Reversing course after two months of decline, prices of the commercial variant of liquefied petroleum gas (LPG) cylinders were hiked by approximately ₹10 per cylinder across the country on Tuesday (September 1, 2026). The price of domestic cylinders remained unchanged. 

Prices of the free-trade 5-kg cylinders, which cater largely to the migrant populations, were also increased by approximately ₹2 per cylinder.

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Other than LPG, the prices of aviation turbine fuel (ATF) for domestic airlines were also increased to ₹121.28/litre, a hike of ₹6.28 per litre. 

Prices in metro cities  

The latest hike brings the price of the 19-kg cylinder in Delhi to ₹2,747.5 per cylinder, following a ₹9.5 hike. In Mumbai, they cost ₹2,701 per cylinder following a similar hike. In Mumbai, they cost ₹2,701 per cylinder following a ₹9.5 hike. Among the metro cities, Kolkata observed a steeper hike, with the commercial cylinder price rising by ₹11.5 to ₹2,884. In Chennai, the price rose to ₹2,916.5 per cylinder, an increase of ₹10.5.

The 5-kg free-trade LPG cylinders now cost ₹764 per cylinder in the national capital. Sales of free-trade LPG cylinders have recently seen an uptick, with new LPG connections on hold amid supply uncertainties due to the re-escalation of the conflict in West Asia.

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Offsetting impact

According to Prashant Vashisht, senior vice president and co-group head, corporate sector ratings, at ratings agency ICRA, the latest commercial LPG price hike primarily seeks to somewhat offset the under-recoveries being incurred on domestic LPG cylinders.

“At present, the under-recovery on domestic LPG cylinders is hovering at about ₹200 per cylinder. Thus, the latest hike potentially tries to somewhat compensate for that amount, although the proportionate sales of commercial LPG are much smaller [compared to the domestic variant]. I would not read much into it,” Mr. Vashisht said.

Manpreet Singh, treasurer at the National Restaurants Association of India (NRAI), told The Hindu that the hike is nearly negligible, but that it prompted concerns that prices could increase further.

“Today’s hike in itself is negligible. The concerns are primarily about there being potential hikes in future,” he said, adding, “This could increase the overall operating cost for restaurants coinciding with food inflation, which would increase the burden.”

The hike in commercial LPG prices came after two successive months wherein prices slipped by a total of about ₹380 per cylinder. This was after prices had spiralled upwards cumulatively by about ₹1,345 per cylinder across four tranches at the peak of the West Asia crisis.