Commercial LPG Cylinder Prices See Hike Across India
Effective September 1, 2026, the price of 19-kg commercial liquefied petroleum gas (LPG) cylinders has seen an increase ranging from ₹9.50 to ₹11 across major Indian cities. This adjustment comes as oil marketing companies navigate pressures on energy supplies and elevated crude costs linked to ongoing geopolitical tensions in West Asia.
In Delhi, the price of a 19-kg LPG cylinder climbed by approximately ₹9.50, setting the new rate at ₹2,747.50. Mumbai saw its commercial cylinder price reach ₹2,701. Chennai recorded a new rate of ₹2,916.50, while Kolkata experienced the steepest hike of ₹11.50, bringing its price to ₹2,884.
Other cities also reported increases: Thiruvananthapuram and Bengaluru both saw a ₹10 rise, with prices reaching ₹2,784 and ₹2,831 respectively. Bhubaneswar and Hyderabad experienced an ₹11 increase, pushing their rates to ₹2,919 and ₹2,996. Patna's commercial LPG cylinder price now stands at ₹3,029, remaining above the ₹3,000 mark.
In a relief for households, the rates for 14.2-kg domestic LPG cylinders have not been affected by these latest revisions.
Aviation Turbine Fuel (ATF) and Small LPG Refills Also Rise
Alongside commercial LPG, the price of Aviation Turbine Fuel (ATF) for domestic airlines also increased. According to Indian Oil Corporation (IOCL) sources, ATF rates went up by ₹6.28 per litre, from ₹115 to ₹121.28 per litre. Additionally, the price for 5-kg FTL non-domestic LPG refills saw a minor increase of ₹2, moving from ₹762 to ₹764 on the same day.
West Asia Conflict Impacts Energy Sector
The recent price adjustments occur amidst a backdrop of heightened energy supply concerns and rising crude oil expenses, largely attributed to the ongoing conflict in West Asia. India, heavily reliant on imports, particularly for crude oil (over 88%) and LPG (nearly 90% via the Strait of Hormuz), is susceptible to such global disruptions.
Indian Oil Corporation (IOC) Chairman Arvinder Singh Sahney addressed these challenges at the company’s 67th annual general meeting. He emphasized IOC’s priority in maintaining energy supply continuity despite constrained sourcing options and volatile international markets, especially as maritime trade through the Strait of Hormuz faced strain.
Indian Oil's Strategic Response to Supply Pressures
To mitigate the impact of these disruptions, IOC implemented several strategic measures. The corporation diversified its crude sourcing, realigned refinery operations, and strengthened supply-chain coordination to secure alternate supplies and optimize cargo movements. It also established 24-hour control rooms and conducted daily reviews to swiftly respond to potential supply gaps.
Despite a significant shift away from Middle Eastern crude grades, IOC reported operating its refineries at over 100 percent utilization. The company also ramped up liquefied petroleum gas production by nearly 30 percent within a short period and ensured continued gas supplies to priority sectors, securing additional LNG from diversified geographies.
Record Operating Performance Amid Challenges
Even with the global energy market volatility, IOC reported a record operating performance for the year ended March 2026. The company posted a standalone net profit of ₹36,802 crore on a turnover of approximately ₹8.86 trillion, with aggregate sales exceeding 105 million tonnes across its product portfolio.
Refineries processed a record 75.45 million tonnes of crude, and liquid pipeline throughput reached an unprecedented 102.52 million tonnes. Domestic petroleum-product sales hit an all-time high of 88.97 million tonnes. This strong momentum continued into the first quarter of the current financial year, with crude processing at 109.4 percent capacity utilization and a domestic petroleum-product market share rising to 43.1 percent.
Future Expansion and Diversification Plans
Looking ahead, IOC is accelerating investments in its core refining operations, with expansions at Panipat, Gujarat, and Barauni projected to increase the group’s refining capacity from 80.75 million tonnes to approximately 98 million tonnes annually. This expansion is expected to contribute over 40 percent of India's incremental refining capacity.
The company is also actively diversifying its portfolio to reduce reliance on traditional refining. It targets higher contributions from petrochemicals, natural gas, renewables, biofuels, green hydrogen, and sustainable aviation fuel. Plans include raising petrochemical intensity to about 15 percent by 2030, increasing natural-gas sales 1.5 times by the same year, and boosting upstream integration to over 10 percent by 2031.
Building Resilience for Energy Security
Construction has commenced on a large-scale green hydrogen plant at Panipat, and IOC has received ISCC CORSIA certification for sustainable aviation fuel production. Its renewable-energy arm, Terra Clean, is developing 1 gigawatt of capacity, with an additional 4.3 gigawatts in preparation. Chairman Sahney underscored the importance of building resilience through agility, diversification, and preparedness to ensure national energy security in an uncertain world.