Commercial LPG cylinder price hiked by Rs 10 to Rs 2,820 from November 1

This marks the third consecutive monthly increase in commercial gas rates, dealing a blow to the hospitality sector, eateries, and commercial vendors right in the middle of the peak festive season.

Meanwhile, the price of a 5-kg Free Trade LPG (FTL) cylinder for a new connection stands at Rs 1,903, while a 5-kg FTL refill is priced at Rs 782, according to the revised rate list.

The LPG price landscape in 2026 has witnessed unprecedented volatility, driven largely by external geopolitical shocks. Prices saw a massive single-month surge of nearly Rs 1,000 per cylinder on May 1, pushing commercial LPG rates above the Rs 3,000 mark to around Rs 3,071.50 in Delhi.

Relief followed in July and August, when oil marketing companies announced cumulative cuts totalling Rs 380 per cylinder, bringing substantial respite to commercial consumers during mid-summer.

The trend reversed again during the festive season with consecutive hikes. After marginal upward adjustments on September 1 and a Rs 65 per cylinder hike on October 1, prices were raised again on November 1 by Rs 10 to Rs 17 across metros, taking the Delhi rate to Rs 2,820.

The elevated gas and fuel import costs throughout 2026 are largely driven by escalating tensions and naval disruptions in the Strait of Hormuz, the critical maritime choke point through which a significant portion of Middle Eastern crude and liquefied petroleum gas (LPG) passes.

India depends on imports for roughly half of its natural gas and LPG consumption, with a major share of LPG shipments originating from Gulf producers that transit through the Strait.

Operational bottlenecks and heightened security risks in the Strait earlier this year triggered a contraction in global LPG supply, leading to freight spikes.

The higher shipping risk premiums, combined with global crude volatility with Brent hovering above $110 per barrel and elevated international Saudi Aramco contract prices, have kept domestic commercial fuel rates elevated despite minor month-on-month adjustments. (ANI)