Commercial LPG Prices Hiked By Rs 993 Amid US-Iran War: Here's What Per Cylinder Costs Now

Prices of commercial LPG were hiked by Rs 933 on Friday, May 1, on the back of surge in global crude oil prices linked to the escalating Middle East conflict. A 19-kg commercial LPG now costs a record high of Rs 3,071.50 in Delhi, according to state-owned oil companies. In Mumbai, commercial LPG cylinder now costs Rs 3,024 compared to Rs 2,031 in the previous month. Commercial liquefied petroleum gas rates were last increased by Rs 195.5 per 19-kg cylinder on April 1, 2026.

In three increases, commercial LPG rates have gone up by Rs 1,303. The move comes as Brent crude oil bencgmark hit $126 per barrel on Thursday, over geopolitical tensions in the Middle East. Global crude oil prices have risen amid disruption to energy supplies linked to the ongoing war in West Asia. Higher crude prices influence fuel costs and supply decisions across energy markets. Crude oil prices have shot up almost 60% since the beginning of the US-Iran war two months ago. 

ALSO READ: Oil Firms Losing Rs 14/Litre On Petrol, Rs 18/Litre On Diesel As Crude Prices Soar

The sharp increase in 19-kg LPG cylinder will directly impact restaurants, hotels, bakeries and other establishments that rely on commercial LPG for daily operations. Industry players often pass on part of the increased cost to consumers, which could reflect in food and dining prices in the coming weeks. The 5 kg Free Trade LPG (FTL) cylinder, used by small establishments and for limited commercial purposes, is not subsidised and priced closer to market rates, making it more sensitive to global fluctuations.

Domestic LPG Cylinder Prices Steady

Domestic cooking gas LPG rates, which were last hiked by Rs 60 per 14.2-kg cylinder on March 7, remain unchanged, according to state-run refiner Indian Oil Corp Ltd (IOCL). It costs Rs 913 per 14.2-kg cylinder in Delhi. State-owned oil marketing companies Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum revise aviation turbine fuel (ATF) or jet fuel and LPG prices on the first day of every month based on international benchmarks and foreign exchange rate.

IOCL confirmed that retail prices of petrol, diesel and domestic LPG will not change, insulating customers from the rise in global crude oil prices. "The retail prices of petrol, diesel and domestic LPG (14.2 kg cylinders) have remained unchanged, fully insulating domestic consumers from the recent increase in international fuel prices," IOCL said in a statement. It added that around 90% of petrol and diesel consumption in India is by the general public, and there will be no change in their prices. 

ALSO READ: Brent Crude Surges To $126 As US-Iran Standoff Tightens Oil Supply Fears

''There has been no change in the price of the 14.2 kg domestic LPG cylinder, which continues to be used by around 33 crore households across the country,'' said IOCL. Since India imports a significant portion of its LPG requirements, the domestic pricing of commercial and non-subsidised cylinders is linked to international benchmarks and is revised on a monthly basis.

Overall, about 80% of petroleum products have seen no price change, ensuring stability for most consumers, said the oil marketing giant. Price revisions have been limited to select industrial segments, which account for a small share of total consumption and are adjusted monthly based on global rates. While domestic LPG rates have been held steady in recent months to shield households from inflation, commercial cylinder prices have seen frequent changes based on global trends.

LPG Cylinder Prices In India
Photo Credit: NDTV Profit

At the same time, around 4% of petroleum products have seen a price cut, reflecting global market movements. Overall, around 80% of petroleum products, including domestic LPG, have seen no price change this month, while about 16% of products, primarily for industrial and commercial use, have seen an increase. The remaining 4% have seen a downward revision.

IOC said the decision reflects a "calibrated and balanced approach" adopted by oil marketing companies under the guidance of the Ministry of Petroleum and Natural Gas. The aim is to align with the global trends while protecting domestic consumers and ensuring economic stability. Retail fuel prices in India include the base price, central excise duty, state value added tax or VAT, and dealer commission, so changes in excise duty do not always lead to an immediate change at the pump.

ALSO READ: Foreign Investor Outflows Hit Rs 1.92 Lakh Crore In 2026 As April Sees Fresh Exodus

Domestic ATF Steady, Jet Fuel For International Ops Hiked

Aviation fuel prices for domestic airlines were left unchanged on Friday, providing relief for local carriers over any immediate cost increase. However, a month after jet fuel prices for them were more than doubled, state-run OMCs have hiked the aviation turbine fuel (ATF) rates for international airlines by over 5% on May 1, marking the second consecutive monthly increase. The move follows as oil refiners partly pass on higher global energy costs to airlines operating globally.

The price of ATF for overseas airlines has been increased by USD 76.55 per kilolitre, or roughly 5.33 per cent, taking the rate in Delhi-India's busiest aviation hub-to USD 1,511.86 per kilolitre. ATF for domestic airlines will continue to be priced at Rs 1,04,927.18 per kl as OMCs have decided to absorb the rise in global fuel prices to protect airlines and consumers.

Even on April 1, when rates for international carriers were more than doubled to USD 1,435.31 per kl, oil companies had increased jet fuel price for domestic airlines by 25% to Rs 1,04,927.18 per kilolitre, adopting a calibrated approach in passing on the increase that had become necessary because of the West Asia war-linked surge in international energy prices.

ALSO READ: Middle East Conflict, Q4 Earnings, Oil Prices to Drive Markets This Week: Analysts

Also, prices of bulk diesel, used by industrial users like telecom signal towers, were increased from about Rs 137 per litre to over Rs 149 a litre. These rates compare to the Rs 87.62 a litre price of diesel available at petrol pumps. 

Petrol and diesel prices continue to remain frozen after a Rs 2 per-litre reduction in March 2024; petrol currently costs Rs 94.72 per litre in Delhi and diesel Rs 87.62. Airlines across the world are facing disruptions amid a tightening jet fuel supply, triggered by the ongoing war in West Asia. The Strait of Hormuz - a critical conduit for global energy flows - remains effectively closed as the conflict enters its third month, further straining fuel availability and supply chains.

Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.