The New Year began on a sombre note for India’s hospitality and catering industry as oil marketing companies announced a sharp increase in the price of 19 kg commercial LPG cylinders effective January 1, 2026. The price hike of ₹111 per cylinder has significantly raised operating costs for hotels, restaurants, dhabas, and catering services across the country.

Steep Price Rise Across Major Cities

Following the revision, the price of a 19 kg commercial LPG cylinder in the national capital has risen to ₹1,691.50 from ₹1,580.50. Similar increases have been recorded in other metropolitan cities, with prices reaching ₹1,642.50 in Mumbai, ₹1,795 in Kolkata, and ₹1,849.50 in Chennai.

Industry experts note that the revised domestic prices are now closely aligned with international commercial LPG rates, reflecting global fuel price trends and partial price rationalisation by oil marketing companies.

Hospitality Industry Braces for Margin Pressure

The hike has triggered concern among hospitality sector stakeholders, who fear shrinking profit margins and higher input costs. Restaurants and catering businesses, which heavily rely on commercial LPG for daily operations, are expected to feel the impact most acutely.

“This hike at the start of the year will strain our budgets significantly,” said a restaurant owner in Delhi, adding that repeated increases could eventually force businesses to pass costs on to consumers.

Domestic LPG Prices Remain Unchanged

Amid the price hike for commercial users, there was some relief for households as the price of the 14.2 kg domestic LPG cylinder remains unchanged. This decision has been welcomed by families already grappling with inflation and rising living expenses.

ATF Price Cut Offers Partial Relief

In contrast, the aviation sector received some respite with a downward revision in aviation turbine fuel (ATF) prices. Airlines and industry stakeholders are hopeful that stabilising global fuel prices could prompt further rationalisation in domestic fuel rates in the coming months.

Outlook Hinges on Global Energy Trends

As businesses adjust to the latest price hike, industry leaders continue to watch global energy markets closely. Any easing of international fuel prices could influence future revisions and offer much-needed relief to sectors heavily dependent on fuel inputs.