Indian Oil raises commercial LPG and ATF prices from September 1

Indian Oil increased 19-kg commercial LPG prices by about ₹9.50 in Delhi and ₹11.50 in Kolkata, while ATF rose ₹6.28 a litre. The move raises input costs for restaurants, caterers and other LPG-dependent businesses as the company expands supply capacity.

— Source publishedTue, 1 Sept, 2026, 09:17 IST·First seen Tue, 1 Sept, 2026, 09:42 IST·Source Business Today · Latest

What happened

Indian Oil Corporation · Indian Oil raised commercial 19-kg LPG cylinder prices across major cities and increased domestic ATF rates from September 1. The

Key facts

  • 19-kg commercial LPG: up about ₹9.50 to ₹2,747.50 in Delhi
  • 19-kg commercial LPG: ₹2,701 in Mumbai; ₹2,916.50 in Chennai
  • 19-kg commercial LPG: up ₹11.50 to ₹2,884 in Kolkata
  • 19-kg commercial LPG: ₹3,029 in Patna
  • ATF: up ₹6.28 per litre to ₹121.28 per litre
  • 5-kg FTL non-domestic LPG refill: up ₹2 to ₹764
  • LPG production ramped up nearly 30%
  • FY ended March 2026 standalone net profit: ₹36,802 crore
  • FY ended March 2026 turnover: about ₹8.86 trillion
  • Refining capacity planned to rise from 80.75 million tonnes/year to about 98 million tonnes/year

Why this matters

Higher commercial LPG and ATF costs increase the appeal of energy-efficiency, alternative-fuel and supply-chain partnerships for fuel-intensive foodservice and travel businesses.

What to watch

  • Further monthly revisions in commercial LPG prices, especially cumulative increases above ₹50-₹100 per 19-kg cylinder.
  • Crude oil, LPG benchmark and rupee movements that determine whether September's increase broadens into a trend.
  • Restaurant-chain commentary on same-store sales, gross margin and menu-price actions.
  • Airline fare data and fuel-surcharge announcements following the ATF revision.
  • Expansion of Indian Oil commercial LPG supply capacity and any resulting regional availability or pricing changes.
  • Quick-service restaurant and cloud-kitchen chains may review city-level menu pricing, packaging charges and promotional intensity.
  • Caterers may add fuel-adjustment clauses to new event, airline and institutional contracts.
  • Retailers and FMCG distributors may face marginally higher air-freight and expedited replenishment costs following the ATF increase.
  • LPG-dependent businesses may accelerate induction cooking, piped-gas conversion or bulk-procurement negotiations where feasible.
  • Airlines may reassess fuel surcharges and route-level pricing if ATF increases persist.