New Delhi, Jan 1: The New Year has kicked off with a significant rise in fuel prices, as the government on Wednesday announced an increase in the price of 19-kg commercial LPG cylinders by Rs 111, effective January 1. The price hike is set to increase operating costs for businesses, particularly hotels, restaurants, and small enterprises across India.

Commercial LPG Cylinder price revisions:

Following the price revision, a 19-kg commercial LPG cylinder now costs Rs 1,691.50 in Delhi, up from Rs 1,580.50. Other major cities have seen similar hikes:

· Kolkata: Rs 1,795 (up from Rs 1,684)

· Mumbai: Rs 1,642.50 (up from Rs 1,531)

These price increases are expected to impact businesses relying heavily on LPG for daily operations, potentially leading to higher service costs and a ripple effect on consumers.

Domestic LPG Cylinder prices remain stable

In contrast, there has been no change in the price of 14-kg domestic LPG cylinders, providing some relief to household consumers. Domestic LPG prices remain largely unaffected, with rates ranging from Rs 850 to Rs 960 across various cities:

· Delhi: Rs 853

· Mumbai: Rs 852.50

· Lucknow: Rs 890.50

· Ahmedabad: Rs 860

· Hyderabad: Rs 905

· Varanasi: Rs 916.50

· Patna: Rs 951

This stability in domestic LPG prices is welcomed by households, especially after the commercial LPG price surge.

Revised Commercial LPG rates in other cities

According to Indian Oil’s website, the revised prices of 19-kg commercial LPG cylinders in other cities include:

· Patna: Rs 1,953.50

· Noida: Rs 1,691

· Lucknow: Rs 1,814

· Bhopal: Rs 1,696

· Gurugram: Rs 1,708.50

Factors driving the price increase

The rise in commercial LPG prices is attributed to various factors such as the Import Parity Price (IPP), global fuel rates, fluctuations in the rupee-dollar exchange rate, freight costs, insurance, and local taxes. State-level taxes and logistical costs also contribute to the regional price differences.

Domestic PNG price reduction

While commercial LPG prices have risen, households have received some relief through a reduction in domestic piped natural gas (PNG) prices. Indraprastha Gas Limited (IGL) announced a reduction in domestic PNG rates for Delhi and the National Capital Region, effective from January 1, 2026:

Delhi: Rs 47.89 per SCM

Gurugram: Rs 46.70 per SCM

Noida, Greater Noida, Ghaziabad: Rs 47.76 per SCM

These revised PNG prices are expected to ease the financial burden on household consumers, offering a bit of respite amid the rising fuel costs.

The revised fuel prices highlight the ongoing volatility in energy markets and the continued pressure on both businesses and consumers in India.