LPG Price Hike in India: Domestic Cylinder Up by ₹60, Commercial LPG Rises ₹114.50 Amid Middle East Tensions

India witnessed a significant increase in Liquefied Petroleum Gas (LPG) prices on March 7, 2026, as state-owned Oil Marketing Companies (OMCs) revised cylinder rates across the country. The price of the 14.2 kg domestic LPG cylinder has gone up by ₹60, while the 19 kg commercial cylinder used by restaurants and businesses has increased by ₹114.50.

This is one of the largest LPG price revisions in recent months, and the increase is largely attributed to rising global energy prices and geopolitical tensions in the Middle East.

New LPG Cylinder Prices in Major Indian Cities

Following the latest revision, LPG prices now vary across metro cities due to local taxes and transportation costs.

The price of commercial LPG cylinders has crossed ₹2,000 in several cities, creating concerns for small businesses and the food service sector.

Why LPG Prices Are Rising

Middle East Conflict and Energy Market Volatility

The primary reason behind the LPG price increase is the ongoing conflict in the Middle East, which has disrupted global energy markets. Traders and energy companies are worried about potential disruptions in oil and gas shipments.

One of the biggest concerns is the Strait of Hormuz, a critical maritime route through which nearly 20% of the world’s petroleum supply is transported.

If tensions escalate or shipping routes are restricted, global crude and LPG prices could surge further.

India’s Heavy Dependence on LPG Imports

India imports more than half of its LPG demand, primarily from the Gulf region. Because of this dependence, any increase in global prices or shipping risks quickly impacts domestic LPG pricing.

The price revisions are implemented by government-owned companies such as:

• Indian Oil Corporation (IOC)

• Bharat Petroleum Corporation Limited (BPCL)

• Hindustan Petroleum Corporation Limited (HPCL)

Relief for Ujjwala Scheme Beneficiaries

Despite the price hike, the government has confirmed that beneficiaries under the Pradhan Mantri Ujjwala Yojana (PMUY) will continue receiving subsidies.

Over 10 crore households enrolled in the scheme receive a subsidy of ₹300 per cylinder.

For example:

• Effective LPG cost in Delhi for PMUY users: around ₹613 per cylinder

This support aims to ensure that low-income households remain protected from rising fuel prices.

Restaurants and Food Businesses Likely to Feel the Impact

The food and beverage industry is expected to face increased operating costs due to the rise in commercial LPG prices.

Restaurants, cloud kitchens, street food vendors, and Quick Service Restaurants (QSRs) rely heavily on LPG for daily cooking operations.

Industry analysts warn that:

• Many small eateries may experience profit margin pressure

• Some businesses may increase menu prices

• Food delivery platforms could see slightly higher average order values

For small food businesses already dealing with high raw material costs, the increase in LPG prices could become another financial challenge.

Government Response and Supply Situation

Union Petroleum Minister Hardeep Singh Puri has assured that India currently has adequate fuel reserves and there is no immediate shortage of LPG supply.

However, officials are closely monitoring global developments in the Middle East, as prolonged geopolitical tensions could continue influencing fuel prices.

Future Outlook: Will LPG Prices Rise Further?

Energy analysts say the direction of LPG prices will depend on several global factors, including:

• Stability in the Middle East region

• Global crude oil price trends

• Shipping security through the Strait of Hormuz

• Currency fluctuations affecting imports

If geopolitical tensions persist, further LPG price adjustments cannot be ruled out in the coming months.

FAQs

Why did LPG prices increase in India in March 2026?

LPG prices increased mainly due to rising global energy prices and geopolitical tensions in the Middle East, which raised import costs for India.

How much did LPG cylinder prices increase?

The 14.2 kg domestic LPG cylinder increased by ₹60, while the 19 kg commercial cylinder rose by ₹114.50.

What is the new LPG price in Delhi?

After the revision, the domestic LPG cylinder in Delhi costs around ₹913, while the commercial cylinder costs about ₹1,883.

Will Ujjwala Yojana beneficiaries still get a subsidy?

Yes. Beneficiaries under the Pradhan Mantri Ujjwala Yojana (PMUY) continue to receive a ₹300 subsidy per LPG cylinder.

Will restaurant food prices increase due to LPG price hike?

Possibly. The increase in commercial LPG prices may push restaurants and small eateries to adjust menu prices to manage rising operating costs.