Domestic LPG and commercial cooking gas prices across India have been hiked sharply from March 7, 2026, with 14.2 kg domestic cylinders up by ₹60 and 19 kg commercial cylinders up by about ₹115, as the Iran–West Asia war and Strait of Hormuz disruptions push up global LPG and energy costs.

LPG Price Hike Amid Iran War – Key Details

• Effective date: New LPG prices applicable from March 7, 2026 across India
• Domestic LPG (14.2 kg):
  • Delhi: from ₹853 to ₹913.
  • Mumbai: from ₹852.50 to ₹912.50.
  • Kolkata: around ₹879 to ₹939.
  • Chennai: from ₹868.50 to ₹928.50.
• Commercial LPG (19 kg):
  • Increase of about ₹115 per cylinder, taking Delhi commercial rate to around ₹1,883 (about 6.5% jump).
• Recent trend:
  • This is the second domestic LPG price hike in less than a year; the previous increase was ₹50 in April 2025.indiatoday+1
  • Commercial LPG has seen a cumulative rise of over ₹300 so far this year.

Why Have LPG Prices Been Hiked?

• West Asia/Iran war & Hormuz crisis:
  • Military conflict in West Asia/Iran region has unsettled global energy markets and raised freight and insurance costs.
  • The Strait of Hormuz, a key shipping choke point, carries a significant share of global oil/LPG flows; disruptions here directly affect India, which depends heavily on this route.
• Global LPG & oil price surge:
  • Industry officials say the increase reflects a surge in global LPG and oil prices as shipping delays, risk premiums and supply uncertainty rise.
• Import dependence:
  • India imports a large share of its LPG and crude oil, so global price spikes transmit quickly into domestic retail LPG pricing.

Despite the hike, officials point out that domestic LPG prices in India are still lower than in many neighbouring countries, and that taxes/VAT cause city-wise differences.

Government & OMC Response

• No shortage assurance:
  • Petroleum Minister Hardeep Singh Puri has said there is no shortage of fuel or LPG in India, and that supplies remain stable despite the Middle East crisis.
  • He emphasised that the government’s priority is availability of affordable and sustainable fuel and urged citizens not to panic.
• Oil marketing companies (OMCs):
  • Indian Oil Corporation (IOC) has clarified that fuel stocks are sufficient and supply/distribution networks are functioning normally.
  • IOC requested consumers not to crowd fuel stations and to rely only on official sources for information.
• Strategic stock & diversification:
  • Government sources say India has about 50 days’ cover – roughly 25 days of crude oil plus 25 days of petroleum products on hand.
  • India has diversified crude and LPG imports, adding suppliers like Russia and the US to enhance energy security.

Strengths / Positives in This LPG Situation

• Government assurance of adequate stocks and no LPG, petrol or diesel shortage despite Middle East conflict.
• India maintains about 50 days of combined crude and products inventory, providing a buffer against short-term disruptions.
• Diversified import basket with higher sourcing from Russia, US and other suppliers reduces overdependence on any single region.
• Even after the ₹60 hike, Indian domestic LPG remains cheaper than in several neighbouring countries, according to officials.
• Price signals can encourage more efficient LPG use, accelerate clean cooking subsidy targeting, and support fiscal space for future support schemes.

Risks / Concerns From LPG Price Hike

• Household budget pressure: ₹60 jump in LPG cylinder price directly hits urban and rural household monthly expenses, especially low-income families.
• Commercial users’ costs: ₹115 increase in 19 kg commercial cylinders pushes up input costs for hotels, restaurants, bakeries, caterers and small eateries.
• Inflation risk: Higher cooking gas costs can feed into food inflation, especially in services and hospitality, adding pressure on headline CPI.
• Dependence on volatile West Asia routes like Strait of Hormuz continues to expose India to geopolitical shocks.
• If conflict escalates further, additional hikes in LPG, petrol and diesel cannot be ruled out, raising macro and political risk around fuel prices.