Your plate of biryani at the restaurant or that weekend flight ticket is about to get noticeably more expensive.
On May 1, 2026, the government sharply hiked the price of commercial LPG by ₹993 per 19-kg cylinder.
Jet fuel prices have also surged in recent weeks. While your home cooking gas remains untouched, this hidden inflation is quietly hitting businesses and travellers. Lets break it down:
What Exactly Has Changed?
- Commercial LPG (19-kg cylinder): Price increased by ₹993. In Delhi, it now costs ₹3,071.50 (earlier ₹2,078.50). Similar big jumps seen in Mumbai (₹3,024), Kolkata, and Chennai.
- 5-kg commercial mini cylinders: Hiked by ₹261 – this affects street vendors and small eateries.
- Domestic LPG (14.2-kg household cylinder): No change. Prices remain stable for over 33 crore families.
- ATF (Aviation Turbine Fuel / Jet Fuel): Prices have risen sharply in April and May due to global factors. The government limited the hike for domestic flights, but international operations faced steeper increases.
Why Did Prices Go Up So Much?
The main trigger is the ongoing conflict in West Asia involving the US, Israel, and Iran. This has badly affected supplies through the Strait of Hormuz — the narrow sea route that handles a huge portion of the world’s oil and LPG shipments.
- Global crude oil and LPG prices have spiked dramatically.
- Saudi Contract Price for LPG rose sharply in a short time.
- Reduced supply and higher international costs are directly hitting India, which imports a large part of its energy needs.
- This is the third straight monthly increase for commercial LPG.
The government has deliberately protected ordinary citizens by keeping domestic LPG, petrol, and diesel prices unchanged. Only commercial users are facing the full impact.
Who Is Affected the Most?
- Restaurants, Hotels & Small Eateries Commercial LPG is the lifeline for cooking in hotels, restaurants, bakeries, and caterers. With costs jumping nearly 48% in recent hikes combined, many businesses may soon raise menu prices. A cup of tea, meals, or snacks could become costlier. Street food vendors using small cylinders will also feel the pinch on their thin margins.
- Airlines & Passengers ATF makes up 40-60% of an airline’s total operating cost. Higher jet fuel prices have already forced airlines to add fuel surcharges. Domestic airfares may see moderate increases, while international tickets have become noticeably expensive. Some routes could see fewer flights if losses continue.
- Common People
Direct impact on household cooking gas: None for now.
Indirect impact: Eating out, ordering food, or planning air travel will gradually become more expensive.
What Is the Government Doing?
- Fully shielding domestic consumers.
- Capping or partially passing on the ATF hike for domestic airlines to protect Indian flyers.
- Oil marketing companies are absorbing some losses on the domestic side.
- This is a careful balancing act between global market realities and protecting the common man.
What Can Happen Next?
- Restaurants and hotels are likely to pass on higher costs to customers.
- Airlines may adjust fares, routes, or schedules.
- If the situation in West Asia improves and supplies through the Strait of Hormuz resume, prices could ease in the coming months.
Watch for indirect effects on overall food inflation outside homes.
In short, the LPG and ATF price hike is the inflation you don’t see coming directly in your kitchen, but you will feel it when you eat out or book a flight. It is a direct result of the global energy crisis triggered by the West Asia conflict.
While the government has protected household LPG, businesses are now bearing the burden — and much of that burden will eventually reach your plate and your travel plans.