LPG Price Hike in India: Domestic Cylinder Up Rs 60, Commercial Gas Costlier by Rs 115

Domestic cooking gas prices in India have increased nationwide, adding pressure on household budgets as global energy markets remain volatile. The price of a 14.2-kg domestic LPG cylinder has been raised by Rs 60, while commercial LPG cylinders used by businesses have become costlier by about Rs 115.

The revised prices came into effect on March 7, amid rising global crude oil and gas prices linked to the ongoing geopolitical tensions and military conflict in West Asia. Energy markets have experienced uncertainty as disruptions in supply chains and shipping routes continue to affect global fuel availability.

Industry experts say the increase reflects broader global energy price movements and supply concerns stemming from the escalating conflict involving Iran and regional security risks affecting oil and gas transport routes.

Revised LPG Prices in Major Indian Cities

Household LPG Cylinder Prices

According to the Indian Oil Corporation (IOC), the price of a non-subsidised domestic LPG cylinder in Delhi has increased from Rs 853 to Rs 913.

Similar price adjustments have been recorded across other major metropolitan cities:

• Mumbai: Rs 912.50 per cylinder

• Kolkata: Around Rs 939 per cylinder

• Chennai: Rs 928.50 per cylinder

Prices vary slightly between states because of differences in local taxes, VAT and transportation costs.

Industry officials say the price hike mirrors the rising costs of global energy supplies, particularly those originating from West Asia, a region that plays a crucial role in international oil and gas supply chains.

Despite the increase, authorities maintain that cooking gas prices in India remain relatively lower compared with several neighbouring countries in South Asia.

Second LPG Price Revision in Less Than a Year

Previous Increase in 2025

The latest revision marks the second increase in domestic LPG prices within the past year.

The previous adjustment took place in April 2025, when the government approved a Rs 50 increase in domestic cooking gas prices.

Energy analysts note that LPG pricing in India is influenced by multiple factors, including:

• Global crude oil prices

• Import costs

• Exchange rate fluctuations

• Freight and logistics expenses

These elements together determine the final price consumers pay across different states.

Subsidy Support for Ujjwala Beneficiaries

Continued Relief Under PM Ujjwala Yojana

Despite the price increase, the government has confirmed that beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) will continue receiving financial support.

Eligible households will receive a subsidy of Rs 300 per 14.2-kg cylinder for up to 12 refills annually.

The flagship welfare scheme currently covers more than 10 crore households across India, providing LPG connections to economically weaker families and promoting cleaner cooking fuels.

The subsidy mechanism helps cushion the impact of global fuel price fluctuations for low-income households.

Commercial LPG Prices Surge for Businesses

Restaurants and Hotels Face Higher Costs

Commercial establishments such as restaurants, hotels, catering businesses and food vendors are also facing higher operating costs after the latest LPG price revision.

Revised Commercial Cylinder Prices

In Delhi, the price of a 19-kg commercial LPG cylinder has risen from Rs 1,768.50 to Rs 1,883.

Prices in other major cities now stand at:

• Mumbai: Rs 1,835

• Kolkata: About Rs 1,990

• Chennai: Rs 2,043.50

Industry sources say commercial LPG prices have risen sharply this year, with a total increase of more than Rs 300 so far in 2026.

Higher LPG costs could eventually translate into increased food prices at restaurants and eateries.

West Asia Conflict Disrupting Global Energy Markets

Impact of Iran Tensions on Oil and Gas Supply

The price revision comes at a time when geopolitical tensions in West Asia have unsettled international energy markets.

Concerns have intensified over the security of shipping routes, particularly through the Strait of Hormuz, one of the most important maritime corridors for global energy trade.

Importance of the Strait of Hormuz

The strategic waterway carries a large share of the world’s oil and gas shipments.

Nearly half of India’s crude oil and LPG imports pass through this route, making the country vulnerable to any disruption in tanker traffic.

Recent developments, including US and Israeli strikes on Iranian positions, have heightened tensions in the region.

Following these developments:

• Tehran issued warnings to vessels navigating the region.

• Insurance companies have reduced coverage for tanker shipments.

• Shipping traffic has slowed in some areas due to security concerns.

These developments have contributed to volatility in global energy prices.

Government Assures No Fuel Shortage in India

Statement from the Petroleum Minister

Despite the price hike and geopolitical tensions, the Indian government has assured citizens that fuel supplies remain stable.

Petroleum and Natural Gas Minister Hardeep Singh Puri said energy availability remains secure.

"Our priority is to ensure the availability of affordable and sustainable fuel for our citizens, and we are doing it comfortably. There is no shortage of energy in India, and there is no cause of worry for our energy consumers,"

he said in a post on X.

Authorities have also urged citizens not to panic following rumours circulating on social media about fuel shortages.

Indian Oil Corporation Issues Clarification

In response to public concerns, Indian Oil Corporation issued a statement reaffirming the stability of fuel supply.

"India has sufficient fuel stocks, and supply and distribution networks are functioning normally. Indian Oil is committed to maintaining uninterrupted fuel supply across the country. Citizens are requested not to panic or crowd fuel stations and to rely only on official sources for accurate information".

Officials emphasised that the country currently has adequate fuel reserves and supply infrastructure to meet domestic demand.

India Strengthening Energy Security

Diversified Crude Import Sources

Government sources said India remains in a “very comfortable position” regarding crude oil, petroleum products and LPG availability.

Over the past few years, India has diversified its crude oil imports by increasing purchases from countries such as:

• Russia

• United States

• Middle Eastern suppliers

This diversification strategy has helped reduce supply risks.

Current Fuel Stock Levels

India currently holds fuel reserves that can last for about 50 days, including:

• 25 days of crude oil reserves

• 25 days of refined petroleum product stocks

Officials are also exploring alternative suppliers for crude oil, LPG and LNG as geopolitical tensions in the Middle East continue to evolve.

Conclusion

The latest increase in LPG prices highlights how global geopolitical tensions can quickly impact domestic energy costs. With the Rs 60 rise in household LPG cylinders and Rs 115 increase in commercial cylinders, consumers and businesses across India are likely to feel the effects.

However, the government has reassured citizens that the country’s fuel supply remains secure, supported by diversified import sources and adequate reserves. Subsidies under the Pradhan Mantri Ujjwala Yojana will also help protect low-income households from the full impact of rising prices.

As the conflict in West Asia continues to influence global energy markets, India is closely monitoring the situation while exploring alternative supply routes and suppliers to ensure long-term energy security.