Commercial LPG Cylinder Price: Recent Hikes And Business Implications

Commercial LPG Cylinder Price: The price of commercial LPG (liquefied petroleum gas) cylinders has been a topic of concern and discussion in recent months. Oil marketing companies (OMCs) have implemented significant price hikes, resulting in increased costs for businesses and establishments using commercial LPG cylinders. In this article, we will delve into the details of the recent price changes, explore the reasons behind the fluctuations, and examine the impact on different cities across India.

Understanding Commercial LPG Cylinder Price Increase:

In line with international benchmarks, OMCs have raised the prices of commercial LPG cylinders by a substantial amount. This marks the second increase in the past two months, with the latest adjustment coming into effect on November 1. The price of a 19 kg commercial LPG cylinder has been raised by Rs 101.5, resulting in significant cost implications for businesses.

Historical Price Movements:

To better understand the context of the recent price increase, let’s take a look at the historical movements of commercial LPG cylinder prices. Over the past few months, there have been fluctuations in prices due to various factors, including international benchmarks and supply and demand dynamics.

  • July: The price of commercial LPG cylinders witnessed a marginal increase of 1.65% or Rs 1,476.79 per kl.
  • August: A significant hike of 8.5% or Rs 7,728.38 per kl was implemented, adding to the burden on businesses.
  • September: The steepest-ever increase of 14.1% or Rs 13,911.07 per kl was recorded, further escalating costs for commercial users.
  • October: Another substantial hike of 5.1% or Rs 5,779.84 per kl was introduced, contributing to the financial strain on establishments.
Impact On Airlines And Businesses:

Commercial LPG cylinders play a crucial role in various establishments, including hotels, restaurants, and airlines. The recent price increases have had a significant impact on these sectors, particularly on airlines that heavily rely on jet fuel or aviation turbine fuel (ATF). Jet fuel constitutes approximately 40% of an airline’s operating costs, making any price fluctuations a matter of concern for the industry.

The recent cut in jet fuel prices by almost 6% provides some relief to financially strained airlines. However, the cumulative effect of multiple price hikes over the past few months has put additional pressure on their already tight budgets.

City-wise Analysis Of Commercial LPG Cylinder Price:

The price of commercial LPG cylinders varies across different cities in India. Let’s explore the price differentials and the reasons behind them.


Among all Indian metros, Hyderabad has the highest price for commercial LPG cylinders. Following a hike of approximately Rs 103, the price of a commercial LPG cylinder in Hyderabad now stands at Rs 2,059.50. The significant increase in prices can be attributed to varying state and city taxes. Hyderabad residents face higher prices due to local taxes imposed on commercial LPG cylinders.


In Kolkata, the price of a commercial LPG cylinder has also witnessed a substantial hike. After an increase of around Rs 103, the new price stands at Rs 2,103 per cylinder. Similar to Hyderabad, Kolkata residents face higher prices due to local taxes. 


Chennai has experienced a relatively smaller increase in commercial LPG cylinder prices. The recent hike of Rs 101.50 brings the price of a cylinder to Rs 1,999.50. The reasons behind Chennai’s price differential can be attributed to factors such as transportation and local taxes.


The commercial LPG cylinder prices in Bengaluru have also been subject to an increase of Rs 101.50. The new price of a cylinder in Bengaluru is Rs 1,914. This increase is reflective of the overall trend in commercial LPG cylinder prices across the country.


The national capital, Delhi, has also witnessed a significant increase in commercial LPG cylinder prices. With a hike of Rs 101.50, the new price stands at Rs 1,833. The reasons behind Delhi’s price differential can be attributed to factors such as transportation, local taxes, and market dynamics.

Domestic LPG Cylinder Prices:

While commercial LPG cylinder prices have been subject to fluctuations, the prices of domestic LPG cylinders, commonly used for household cooking, have remained unchanged. It is important to note that the cost of domestic LPG cylinders is different from commercial cylinders due to varying regulations and subsidies.

Price Comparison – Domestic LPG Cylinders:

Let’s compare the prices of domestic LPG cylinders across different metros in India.

Cities LPG Cylinder Price (in rupees)
Hyderabad 955
Kolkata 929
Chennai 908.5
Bengaluru 905.5
Delhi 903

The price differentials in domestic LPG cylinder prices can be attributed to factors such as transportation, distribution costs, and government subsidies.

Frequently Asked Questions About Commercial LPG Cylinder Price:

Why have commercial LPG cylinder prices increased recently?

Oil marketing companies raised prices in line with international benchmarks, causing concerns for businesses.

How often have there been price hikes in recent months?

Prices increased twice in the last two months, with the latest adjustment on November 1 affecting businesses significantly.

What historical price movements have commercial LPG cylinders seen?

From July to October, prices witnessed fluctuations, with the steepest-ever increase in September, impacting businesses financially. 

What is the impact on airlines and businesses?

Commercial LPG price hikes affect sectors like hotels, restaurants, and airlines, putting additional pressure on tight budgets. 

How does the price vary across different cities in India?

Prices differ, with Hyderabad having the highest, influenced by state and city taxes, while Delhi faces factors like transportation.

Why have domestic LPG cylinder prices remained unchanged?

Unlike commercial cylinders, domestic prices are stable due to varying regulations, distribution costs, and government subsidies. 

How can businesses navigate these price changes effectively?

Staying informed about market trends, being proactive, and adapting strategies are crucial for businesses to manage expenses effectively.

Conclusion – Commercial LPG Cylinder Price:

The recent price hikes in commercial LPG cylinders have posed challenges for businesses and establishments across India. The fluctuations in prices are influenced by international benchmarks, supply and demand dynamics, and local taxes. Understanding the factors impacting these price changes is crucial for businesses to plan and manage their expenses effectively.

While the cost of domestic LPG cylinders remains unchanged, it is important to note the disparities in prices across different cities. Factors such as transportation, local taxes, and subsidies play a significant role in determining the final price of LPG cylinders.

As businesses navigate these price changes, it is essential to stay informed about the latest developments in commercial LPG cylinder prices and adapt strategies accordingly. By staying proactive and monitoring market trends, businesses can effectively manage their expenses while providing essential services to consumers.

Disclaimer: The information provided in this article is based on publicly available sources and should not be considered financial or investment advice. Prices may vary and are subject to change.

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