New Delhi, March 7 – The price of cooking gas (LPG) for domestic use has increased by a significant Rs 60 per cylinder, the second increase in less than a year, due to the rise in global energy prices following the West Asia crisis, which has affected the world's third largest energy consumer.
However, top government sources stated that an increase in petrol and diesel prices is not planned, as state-owned oil companies have sufficient financial capacity to absorb the increase.
According to the Indian Oil Corporation (IOC) website, the price of non-subsidized LPG – which is commonly used in households – will now be Rs 913 per 14.2-kg cylinder in Delhi, compared to Rs 853 previously.
Beneficiaries of the Ujjwala Yojana – over 10 crore poor who have received free LPG connections since 2016 – will also face the same price increase. They will now pay Rs 613 per 14.2 kg cylinder, accounting for a subsidy of Rs 300 per bottle for up to 12 refills per year.
Government sources stated that the increase is due to the rise in global energy prices. Despite this increase, the price remains lower than the required Rs 1,050 per 14.2-kg cylinder to break even.
They explained that, considering an average consumption of 4-5 cylinders per year per household, the increase translates to 80 paise per day for a family of four, or just 20 paise per person.
Even at these increased prices, LPG in India is cheaper than in most other countries. Cooking costs Rs 1,207 per bottle in Kathmandu, Rs 1,241 in Sri Lanka, and Rs 1,046 in Pakistan.
Sources indicated that there are no immediate plans to increase petrol and diesel prices, as three fuel marketing companies – Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) – have strong financial positions and can absorb the impact.
Petrol and diesel prices have been frozen since April 2022, with retailers absorbing losses when crude prices are high and making profits when rates are low.
The latest LPG price increase of Rs 60 is the second increase in 11 months. The price was last increased by Rs 50 in April last year.
In addition, the price of commercial LPG – used by establishments such as hotels and restaurants – has increased by Rs 114.5 per 19-kg cylinder. This now costs Rs 1,883 in Delhi. This increase comes on top of the Rs 28 per 19-kg cylinder increase implemented on March 1.
Commercial LPG prices have increased by Rs 302.50 this year.
Officials stated that this increase is due to the significant rise in global energy prices since the US and Israel attacked Iran last weekend, triggering a broader military conflict in the Middle East.
This conflict has led to a near-halt in tanker movement through the Strait of Hormuz – a narrow but critical sea lane between Iran and Oman used by Middle Eastern producers to export oil and gas to global markets. This disruption has significantly reduced energy shipments from the region, leading to a surge in global oil and gas prices.
Since February 28, US crude prices have risen by 35.63 percent, the largest weekly gain in futures contract history, dating back to 1983. West Texas Intermediate (WTI) futures closed at USD 90.90 per barrel. Brent jumped by about 28 percent, reaching USD 92.69 per barrel.
Asian spot prices for liquefied natural gas (LNG) have also risen to about USD 25.40 per million British thermal units (MMBtu) – a three-year high and more than double the level of around USD 10 per mmBtu last week, amid concerns about supply disruptions and halted exports from Qatar.
LPG markets have also tightened as shipments from key Gulf exporters face logistical disruptions, pushing international propane and butane benchmarks higher and raising concerns about supply availability for major importers such as India.
In Mumbai, non-subsidized LPG now costs Rs 912.50, Rs 939 in Kolkata, and Rs 928.50 in Chennai, according to the IOC website.
Rates vary from state to state depending on the incidence of local sales tax or VAT.
The Strait of Hormuz is also a critical conduit for India's energy imports, with roughly half of the crude oil the country buys from overseas transiting through the narrow waterway. In addition, nearly 40 per cent of India's natural gas imports, largely in the form of LNG from Gulf suppliers like Qatar and the UAE, also pass through the strait.
For LPG, the strait is more critical. India consumed 31.3 million tonne of LPG in 2024-25, of which only 12.8 million tonne were produced domestically, with the remainder imported. Of the imported quantity, 85-90 per cent come from countries like Saudi Arabia that rely on the Strait of Hormuz for transit.
The strait has been effectively blocked following a week-old escalation in the region, after US and Israeli strikes on Iran prompted Tehran to retaliate against US bases in neighboring countries.
To augment domestic supplies, the government on Friday invoked sparingly used emergency powers to direct oil refineries to ramp up LPG production.
