The Indian government has hiked commercial Liquefied Petroleum Gas (LPG) cylinder prices, reversing two consecutive months of cuts, from Tuesday, September 1st. The price increase is expected to substantially raise fuel costs for airlines and operating expenses for businesses such as restaurants, hotels, and catering services.

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The price of a 19-kg commercial LPG cylinder has surged 50, mirroring the rise in international benchmark prices. This increase also applies to the 5-kg market-priced cooking gas cylinder, known as Free Trade LPG (FTL), which now costs more.

Airline operators are bracing themselves for a substantial financial hit due to the ATF price hike of Rs 28 per litre, equivalent to a 5.46% increase, from Rs 115 to Rs 121.28. This latest price adjustment follows a previous Rs 5-per-litre hike on August 1st.

The rise in LPG prices marks a reversal of two months of consecutive rate cuts and comes after commercial LPG prices skyrocketed during the West Asia crisis, reaching an all-time high of Rs 3,113.50 for a 19-kg cylinder on July 1st. The price adjustments are based on international benchmark prices and foreign exchange rates.

These changes will have varying impacts across states due to local taxes such as VAT. Notably, the domestic LPG price remains unchanged at Rs 942 for a 14.2-kg cylinder, following its last increase in August. Meanwhile, petrol and diesel prices continue to hold steady.