Rising global tensions are now directly affecting everyday business costs in India.

The government has sharply increased the price of 19-kg commercial LPG cylinders by ₹993, effective May 1, 2026.

This steep hike has pushed the price in New Delhi to ₹3,071.50, creating pressure on restaurants and small businesses.

Other metro cities have also seen similar spikes. In Mumbai, the price now stands at ₹3,024, while Kolkata and Chennai have reached ₹3,202 and ₹3,237, respectively.

These increases follow multiple revisions since late February, indicating a sustained upward trend.

In contrast, domestic LPG prices remain unchanged. A standard 14.2-kg cylinder continues to cost ₹913 in Delhi, with slight variations across cities.

Similarly, petrol and diesel prices have been kept steady, offering some relief to households. PNG rates across major cities have also remained stable, ranging between ₹47.9 and ₹52 per SCM.

However, smaller 5-kg Free Trade LPG cylinders have not been spared. Their prices have risen by ₹261 per cylinder, further adding to the burden on commercial users.

This combination of hikes is expected to ripple across sectors that depend heavily on cooking gas.

The surge in prices is closely linked to the ongoing US–Israel–Iran conflict 2026, which began on February 28.

Disruptions in energy supply chains, especially from key suppliers like Saudi Arabia and the UAE, have tightened availability.

As a result, India has prioritised domestic consumption, even reducing supplies to commercial establishments.

Consequently, LPG consumption in the country dropped by 13% in March. Businesses, particularly restaurants and hotels, are already feeling the strain.

Since these sectors rely heavily on commercial cylinders, many may pass on the increased costs to customers.

While households remain shielded for now, the commercial sector faces rising operational expenses.

If global tensions persist, further price pressures could follow, affecting both businesses and consumers alike.

Image Credit: Thamizhpparithi Maari, CC BY-SA 4.0, via Wikimedia Commons

Image Reference: https://commons.wikimedia.org/wiki/File:Indane_LPG_cylinders_of_Tamilnadu.jpg