New Delhi: Eating out or grabbing a roadside snack may get costlier after state-run oil companies sharply raised the prices of commercial cooking gas by nearly 50% on Friday—according to distributors—amid supply constraints linked to the West Asia war.
The price of a 19 kg commercial LPG cylinder—used largely by restaurants and hotels—now costs ₹3,071.50 in Delhi, up ₹993 from ₹2,078.50 earlier. Likewise, a 5-kg free trade LPG (FTL) cylinder—used by immigrant labourers and students from other states staying in rented accommodation—will now come for ₹810.50 in Delhi, up ₹261 from ₹549 earlier.
International travel, too, might get more expensive, with prices of aviation turbine fuel (ATF) for international flights being raised, according to a statement by state-run refiner Indian Oil Corporation. ATF for international airlines has risen by about 5%, with prices in Delhi up by $76.55 per kl to $1,435.31 per kl, according to industry sources.
Bulk diesel, which is used by industries and state transport corporations, has also seen a price hike of around ₹12 per litre, although retail petrol, diesel, domestic LPG, and jet fuel for domestic airlines have been left untouched.
Describing the price hiked as a calibrated approach, in a statement on Thursday, the ministry of petroleum and natural gas said: “OMCs have undertaken a calibrated price revision aligned with prevailing international trends for a small set of products catering primarily to commercial, industrial and premium segments.”
“Price revisions have been limited to select industrial segments, which constitute a relatively small share of overall consumption and are subject to routine monthly adjustments based on prevailing international prices,” Indian Oil said in its statement, adding that bulk and commercial LPG comprise 1% of India’s total LPG consumption, which stands at around 33 million tonnes.
Restaurants, eateries to be hit
Experts said the price increases may lead to inflationary pressure, but probably not a major hit given their limited share in the overall market of LPG and jet fuel.
“There may be some impact—some airlines are already increasing prices,” N.R. Bhanumurthy, director, Madras School of Economics said. “We need to wait and see whether restaurants and hotels also resort to price hikes.”
According to Pranav Rungta, vice president of the National Restaurants Association of India, that is now likely to happen.
“Deciding prices for items on their menu and changing menu cards is also a time-consuming and expensive exercise,” Rungta said. “Those restaurants that already hiked prices in the past few weeks may be forced to absorb this rising cost. Fuel can account for 2-5% of a typical restaurant’s total costs.”
He also spoke of restaurants being hit by price hikes on inputs — like, for example, paneer and bread — which are made in industrial units that rely on commercial LPG. Some restaurants have also begun switching to electric equipment and installing piped natural gas (PNG), but the transition has been slow.
Noting that the price rise was inevitable but higher than anticipated, Anurag Katriar, founder of Degustibus Hospitality, said, “It’s too early to say whether I will be absorbing the cost or passing it on to consumers. In the immediate term, I don’t see myself making any changes, but if this persists, I may not have an option but to pass on some cost.”
The Mumbai-based restaurant company operates brands such as Indigo, Indigo Deli, Neel and Tote on the Turf.
“If you want six cylinders, you may not get them at once, but you can get three, which is enough for a few days,” he said. “Those in the luxury space may be able to absorb costs, but affordable dining and QSRs may have to pass them on.” Over the longer term, he said that migration to PNG is the solution.
Roadside vendors, who have already been hit by earlier price rises and government checks on stocking, say they will be hit further.
Aklu Sahni, a roadside vendor in New Delhi, said cylinder availability remains erratic, forcing him to rely on 5-kg units. “We are already operating only about three days a week… and may cut timings further. I’ve raised samosa prices to ₹15 from ₹10, and some of my friends have already gone back home,” he said.
Ravi Chaurasia, a roadside tea-seller in Delhi, said he has switched to electric cookstoves due to low LPG cylinder availability and high prices, which has helped him keep costs under control. Yet, he has raised the price of a cup of tea from ₹10 to ₹15.
The macro picture
Experts are uncertain about the impact of the crude price surge on India’s macroeconomic indicators. Brent crude briefly touched $126 per barrel on Thursday, and at the time of writing, the July contract of Brent on the Intercontinental Exchange was trading at $110.06 per barrel, up 0.31% from its previous close.
“It is an evolving scenario—we are not sure where it is headed or when the war will stop,” said Bhanumurthy. “RBI also has very carefully suggested that we might have some inflationary pressure going ahead. Importing countries like India need to absorb these shocks. How and who will absorb this, depends on the policy.”
High oil prices directly affect India’s inflation and current account deficit, as the country imports nearly 90% of its crude requirement. In FY26, India’s oil import bill stood at $121.8 billion, data from Petroleum Planning & Analysis Cell showed.
According to ratings agency Icra, if crude remains in the $120–125 per barrel range, oil marketing companies could face under-recoveries of about ₹80,000 crore on LPG; at $100–105 per barrel, the losses may be around ₹50,000 crore a year.
Soumya Gupta and Vaeshnavi Kasthuril contributed to this story.