Businesses Feel The Pinch As Commercial Gas Prices Soar By Rs 195.5, Has Domestic LPG Followed Suit?
The latest revision marks a significant increase for household consumers as well as commercial users who rely on LPG for daily operations.
- Republic Business
- 3 min read
New Delhi: Due to the escalating conflict in West Asia, Indian business owners are grappling with a sharp rise in operating expenses, primarily caused by the strategic closure of the Strait of Hormuz.
As of the April 1 update, Oil Marketing Companies have significantly raised the cost of 19 kg commercial LPG cylinders by ₹195.50. Coming on the heels of a ₹114.50 increase on March 1, this latest price jump highlights a turbulent period for both industrial and hospitality businesses.
Has Domestic LPG Rate Risen?
Despite the surge in commercial LPG rates, concerns remain about whether household cooking gas will follow suit. For the time being, domestic prices have held steady for the month; in Delhi, a 14.2 kg cylinder continues to retail at ₹913, maintaining the price set after a ₹60 hike on March 7.
Notably, the price of a domestic LPG cylinder had remained unchanged since April 2025, when the non-subsidised rate in Delhi stood at Rs 853. The latest revision marks a significant increase for household consumers as well as commercial users who rely on LPG for daily operations.
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Why are prices rising?
The primary driver behind this surge is the widening conflict in West Asia, which has severely disrupted global energy supply chains.
Crude oil and LPG prices have fluctuated wildly as regional tensions impact major shipping routes.
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While commercial users bear the brunt today, domestic consumers already saw a ₹60 hike on March 7, 2026. For now, the government and OMCs have chosen to hold domestic rates steady to shield households from further immediate inflation.
Will transition to PNG help?
Due to the rising costs and supply tightening, the government has advised commercial establishments, particularly hotels and restaurants, to accelerate their transition to Piped Natural Gas (PNG).
This is part of a broader strategy to reduce the nation's heavy dependence on imported liquefied petroleum gas during geopolitical crises.
Global oil prices
Global oil prices have shot up almost 50 per cent after the war in West Asia disrupted energy supply chains.
Petrol and diesel prices continue to remain frozen after a Rs 2 per-litre reduction in March last year; petrol currently costs Rs 94.72 per litre in Delhi and diesel Rs 87.62.