India's LPG Cylinder Prices Rise in March 2026: What Happened
With 62% of India's LPG imported and 85–90% routed through the Strait of Hormuz, escalating US-Israel-Iran tensions are hitting cooking gas prices and supplies hard.
Team Sahi
India's LPG cylinder prices increased across cities in March 2026. The domestic cylinder price rose by ₹60. The commercial cylinder price rose by ₹114.50. This followed a disruption in West Asia that affected global energy supply routes.
The Price Hike: How Much Did LPG Cost Rise?
The revision applied to both domestic and commercial cylinders.
| Cylinder Type | Price Increase | Effective From |
|---|---|---|
| Domestic (14.2 kg) | +₹60.00 | March 2026 |
| Commercial (19 kg) | +₹114.50 | March 2026 |
Prices vary across cities due to transportation costs, state-level taxes, and local distribution logistics.
Domestic LPG Cylinder Price (14.2 kg) — March 2026
| City | Price (₹) — Approx. |
|---|---|
| Delhi | ₹963 |
| Mumbai | ₹963 |
| Chennai | ₹979 |
| Kolkata | ₹989 |
| Bengaluru | ₹971 |
| Hyderabad | ₹980 |
| Lucknow | ₹961 |
| Ahmedabad | ₹961 |
Note: Prices are indicative and may change based on oil company revisions. Check with your local distributor for the exact current price.
Why Did LPG Prices Rise? The West Asia Connection
India imports a large share of its LPG from West Asia. Roughly 62% of India's total LPG supply is imported. Of that imported volume, approximately 85–90% passes through the Strait of Hormuz.
The Strait of Hormuz is a narrow waterway between Iran and Oman. It connects the Persian Gulf to the Arabian Sea. A large portion of global energy trade — including LPG, crude oil, and natural gas — passes through this strait.
The ongoing conflict in West Asia disrupted shipping activity in the strait. Tanker routes were redirected. Some shipments were delayed. Insurance costs for tankers using the route rose sharply. These factors increased the landed cost of LPG in India.
India's LPG Import Dependency
India produces some LPG domestically through its oil refineries. However, domestic production is not sufficient to meet demand. India depends on imports to cover the gap.
The major LPG exporting countries to India include Qatar, Saudi Arabia, UAE, and the United States. The Gulf countries account for the bulk of India's LPG imports.
When shipping through the Strait is disrupted, Indian buyers face higher freight costs. This eventually feeds through into domestic retail prices.
Impact on the Hospitality and Food Service Sector
The commercial cylinder price increase has a direct impact on restaurants, hotels, canteens, and food stalls. A ₹114.50 increase per commercial cylinder adds up for businesses that use multiple cylinders per month.
| Sector | How Affected |
|---|---|
| Restaurants and hotels | Higher fuel cost for commercial kitchens |
| Street food vendors | Margin pressure on small-scale operations |
| Industrial and manufacturing | Higher input cost for LPG-dependent processes |
| Households | Increased monthly cooking gas expense |
| Agricultural sector | Higher cost for crop drying and processing |
Government Response
The Indian government invoked provisions under the Essential Commodities Act in response to the supply disruption. Refineries were directed to increase domestic LPG production where capacity allowed.
The refill booking cycle was extended from 21 days to 25 days to manage distribution pressure and prioritize households with the greatest need.
No direct subsidy announcement had been made at the time of writing. The government has previously used direct benefit transfers (DBT) to support below-poverty-line (BPL) households for LPG costs.
LPG Price Revisions: How They Work in India
LPG prices in India are revised monthly. The three major public sector oil marketing companies — Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) — announce revised prices on the first of each month.
The price is determined by a formula linked to international LPG benchmark prices (primarily Saudi Aramco Contract Prices), the Indian Rupee to US Dollar exchange rate, and freight costs.
What This Means for India's Energy Outlook
India's dependence on the Strait of Hormuz for energy imports is a structural risk. India has been working to diversify LPG sourcing, including from the United States.
As of March 2026, the situation remains developing. Future price revisions will depend on how the conflict in West Asia evolves and whether shipping routes normalise.
Disclaimer: LPG prices listed in this article are indicative and based on publicly available data as of March 2026. Prices change monthly. Check with your LPG distributor or the IOC/BPCL/HPCL websites for the latest price in your city.