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Commercial LPG prices in India have been increased by around ₹10 per 19-kg cylinder, while aviation turbine fuel (ATF) prices for domestic airlines have risen by ₹6.28 per litre from September 1, 2026. The latest revision is expected to increase operating costs for restaurants, hotels, food businesses and airlines.
The price changes were announced by state-owned oil marketing companies (OMCs) as part of their monthly revision of fuel prices. While commercial LPG and aviation fuel became more expensive, domestic LPG cylinder prices remained unchanged, providing relief to household consumers.
Commercial LPG Cylinder Prices Rise Across Major Cities
The price of the 19-kg commercial LPG cylinder has increased across major Indian cities.
In Delhi, the price has risen by ₹9.50 to ₹2,747.50 per cylinder. In Mumbai, commercial LPG now costs ₹2,701, while the price in Kolkata has increased to ₹2,884. Chennai has recorded a revised price of ₹2,916.50 per 19-kg cylinder.
The increase also affects other commercial LPG users across the country. In Bengaluru, for example, the price has risen by ₹10 to ₹2,831, while Hyderabad has seen an increase of ₹11, taking the price to ₹2,996 per cylinder.
The price of the 5-kg free-trade LPG cylinder has also increased by around ₹2, moving from ₹762 to ₹764.
Domestic LPG Prices Remain Unchanged
Despite the increase in commercial LPG prices, households have not faced a fresh hike in the price of the 14.2-kg domestic LPG cylinder.
This means the latest revision is primarily focused on commercial users, including restaurants, hotels, roadside eateries, catering businesses and other establishments that depend heavily on LPG for cooking and daily operations.
The decision to keep domestic LPG prices unchanged comes as a relief for household budgets, particularly at a time when global energy markets remain volatile.
Aviation Fuel Prices Increase by ₹6.28 Per Litre
Alongside the LPG price revision, aviation turbine fuel prices have also increased.
ATF prices for domestic airlines have risen by ₹6.28 per litre, or 5.46%, to ₹121.28 per litre, from ₹115 per litre previously. This marks the second consecutive monthly increase in aviation fuel prices. ATF prices had already risen by ₹5 per litre in August.
The increase is significant for the aviation industry because aviation fuel represents a substantial portion of airline operating expenses. Industry reports estimate that ATF can account for as much as 40% of an airline’s operating costs.
If elevated fuel prices persist, airlines could face additional pressure on operating margins. Depending on market conditions and airline pricing strategies, higher fuel expenses can also influence airfare decisions.
Why Have LPG and ATF Prices Increased?
The latest price revisions are linked to changes in international benchmark prices and broader developments in global energy markets.
Commercial LPG prices had fallen substantially during July and August. In July, the price of a 19-kg commercial cylinder was reduced by ₹183.50, followed by another ₹192 reduction in August. The latest increase therefore represents a reversal after two consecutive months of price cuts.
International LPG prices have also been affected by geopolitical developments and disruptions in global energy supply chains. India remains heavily dependent on imports to meet its LPG requirements, making domestic prices sensitive to international market movements.
ATF and LPG prices are generally revised at the beginning of each month, with international benchmark prices and foreign exchange movements playing an important role in determining the final rates. Local taxes can also cause prices to vary between states and cities.
Impact on Restaurants, Hotels and Food Businesses
The commercial LPG price hike could have a direct impact on businesses that use large quantities of cooking gas.
Restaurants, hotels, bakeries, catering companies and roadside food outlets rely on commercial LPG for kitchens and other operations. Even a relatively modest increase per cylinder can become significant for businesses that consume several cylinders every day.
Higher fuel expenses could put additional pressure on operating margins, particularly for small restaurants and food businesses already dealing with rising labour, ingredients and transportation costs.
Businesses may absorb the additional expense, improve energy efficiency or eventually adjust menu prices depending on how long commercial LPG prices remain elevated.
Aviation Sector Faces Another Cost Increase
The aviation industry is also facing higher fuel expenses following the latest ATF revision.
Since ATF represents one of the largest operating costs for airlines, consecutive monthly increases can create additional financial pressure. Airlines must balance higher fuel expenses against competition, passenger demand and ticket pricing.
The September increase follows the ₹5-per-litre ATF hike implemented in August, making the latest revision the second consecutive monthly increase.
For passengers, the immediate impact may not necessarily be a direct increase in ticket prices. Airlines consider several factors when setting fares, including demand, competition, capacity, taxes and fuel costs.
Commercial LPG Had Earlier Seen Sharp Price Volatility
Commercial LPG prices have experienced considerable volatility in 2026.
Following the escalation of the West Asia crisis, commercial LPG prices rose sharply before declining in July and August. Reports indicate that the price of a 19-kg cylinder had increased by around ₹1,373 between February and June before the subsequent reductions.
The latest increase highlights how international energy-market developments can quickly influence fuel costs in India.
For businesses and airlines, the key concern will be whether the September hike represents a temporary adjustment or the beginning of another period of sustained price increases.
What Consumers and Businesses Need to Know
The September 1 fuel price revision has produced different outcomes for different categories of consumers.
Households: Domestic 14.2-kg LPG cylinder prices remain unchanged.
Commercial establishments: The price of 19-kg commercial LPG cylinders has increased by around ₹10 in major markets.
Airlines: ATF prices have increased by ₹6.28 per litre to ₹121.28 per litre for domestic carriers.
Small food businesses: Higher commercial LPG costs could add to kitchen and operating expenses.
Air travellers: Higher ATF costs may put additional pressure on airline finances, although the impact on ticket prices will depend on broader market conditions.
Commercial LPG prices have increased by around ₹10 per 19-kg cylinder from September 1, while aviation turbine fuel has become ₹6.28 per litre more expensive for domestic airlines. The changes mark a reversal in commercial LPG prices after two months of reductions and a second consecutive monthly increase in ATF rates.
The latest revision is likely to be closely watched by restaurants, hotels, caterers and other commercial LPG users, as well as airlines facing higher fuel expenses. At the same time, the decision to keep domestic LPG prices unchanged means household consumers have not been directly affected by the September commercial fuel hike.
With global energy markets still influenced by geopolitical tensions and international benchmark movements, businesses and consumers will continue to monitor the next monthly fuel-price revision for further changes.
