LPG Gas Price March 2026: Domestic Cylinder Hiked by ₹60, Commercial Up ₹115 Amid Iran War
In a move that will impact household budgets and business operating costs across the country, the price of domestic LPG cylinders has been hiked by ₹60 effective March 7, 2026. This marks the first increase in domestic cooking gas prices in nearly a year, triggered by a surge in global energy prices following the escalation of the US-Israel-Iran conflict.
As the geopolitical situation in West Asia disrupts supply routes through the strategic Strait of Hormuz, Indian oil marketing companies (OMCs) have revised rates for both domestic and commercial cylinders. Here is the latest on the new prices, the reasons behind the hike, and the relief measures available for consumers.
New LPG Cylinder Prices in Metro Cities (Effective March 7, 2026)
Oil marketing companies—Indian Oil, Bharat Petroleum, and Hindustan Petroleum—revised prices simultaneously on Saturday. Below are the updated rates for a 14.2-kg domestic cylinder in major metros :
| City | Old Price (₹) | New Price (₹) | Price Hike (₹) |
|---|---|---|---|
| Delhi | 853 | 913 | +60 |
| Mumbai | 852.50 | 912.50 | +60 |
| Kolkata | 879 | 930 | +60 |
| Chennai | 868.50 | 928.50 | +60 |
This 7% increase is the first revision in domestic LPG prices since April 2025, when rates were hiked by ₹50 . Before this, the price had remained stable at ₹853 in Delhi for much of 2024-25 and early 2026 .
Commercial LPG Cylinder Prices Also Hiked
Businesses, hotels, and restaurants have been hit with a steeper increase. The price of a 19-kg commercial LPG cylinder has been raised by ₹115 across the country .
Delhi: Now costs ₹1,883 (up from ₹1,768.50).
Mumbai: Now costs ₹1,835 (up from ₹1,720.50).
Kolkata: Now costs ₹1,990 (up from ₹1,875.50).
Chennai: Now costs ₹2,043.50 (up from ₹1,929).
This latest hike for commercial users follows two consecutive monthly increases in January and February 2026 .
Why Have LPG Prices Increased in March 2026?
The primary catalyst for the price revision is the escalating military conflict in West Asia, specifically the war involving Iran and Israel. India is heavily dependent on imports to meet its LPG demand, with approximately 85% to 90% of LPG imports coming from the Middle East .
1. Strait of Hormuz Disruption
A significant portion of India's energy imports passes through the Strait of Hormuz. The ongoing conflict has raised concerns about the safety of tanker movement and potential supply disruptions, driving global energy prices upward .
2. Global Price Surge
The geopolitical tensions have led to a sharp surge in international LPG benchmarks. Since India imports about two-thirds of its cooking gas consumption (33.15 million metric tons last year), domestic rates are highly sensitive to global market fluctuations .
3. First Hike in Nearly a Year
While commercial LPG prices are revised monthly, domestic prices had been kept stable since April 2025, likely due to political sensitivities. However, the severity of the current energy shock has forced OMCs to pass on the increased costs to consumers .
Government Assures Adequate Supply
In response to the crisis, the government has moved swiftly to ensure there is no shortage of cooking gas in the country.
Invoking Essential Commodities Act: The government has directed oil refiners to maximize LPG production by fully utilizing propane and butane streams. Refiners have been barred from diverting these streams to petrochemicals, ensuring supply is prioritized for domestic consumers .
Sufficient Stocks: Union Petroleum Minister Hardeep Singh Puri assured citizens that there is "no need to panic." Sources indicate that India currently has about 25 days of crude oil and petroleum product stocks, and the country remains "very safe" regarding fuel availability .
Relief for Ujjwala Yojana Beneficiaries
While the price hike affects most households, crores of poor families remain protected by the government's subsidy scheme. Beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) will continue to receive a subsidy of ₹300 per 14.2-kg cylinder for up to 12 refills in a year .
For the financial year 2025–26, the government has approved an expenditure of ₹12,000 crore to continue this targeted subsidy, ensuring that the most vulnerable sections of society are shielded from the full impact of the price rise .
State-Level Assistance: Delhi's New Scheme
In addition to central subsidies, some state governments are providing extra support. The Delhi Government, led by Chief Minister Rekha Gupta, recently announced a scheme to provide financial assistance equivalent to the cost of two LPG cylinders per year to all ration card-holding families .
When: Assistance will be given on Holi and Diwali.
How Much:
PMUY families: ₹553 per cylinder (after adjusting the central subsidy of ₹300).
Non-Ujjwala families: ₹853 per cylinder (full cost).
Historical Context: How Prices Have Moved
Prior to this hike, domestic LPG prices had remained surprisingly resilient despite global volatility. However, commercial LPG prices have seen a steady climb.
Commercial LPG has seen a cumulative increase of ₹188 per 19-kg cylinder in Delhi since January 1, 2026 .
Domestic LPG prices were stable for 11 months before this ₹60 hike, having previously been as high as ₹1,000+ per cylinder in 2022-23 .
Impact on Households and Inflation
For an average household that uses about one cylinder per month, the ₹60 hike will increase annual cooking gas expenditure by roughly ₹720 . For businesses, the increase in commercial LPG prices is likely to add to operational costs, which may eventually be passed on to consumers in the form of higher prices for food and services .
Outlook for the Coming Months
With the West Asia conflict showing no signs of immediate de-escalation, the volatility in global energy markets is likely to persist. Analysts suggest that if the supply situation worsens, further price revisions could be on the horizon. However, the government's decision to invoke the Essential Commodities Act suggests that ensuring availability is the current priority, even if it means absorbing some costs or passing them on in a controlled manner .
Disclaimer: LPG prices are subject to change based on global crude oil prices, exchange rates, and government policies. The prices mentioned above are effective as of March 7, 2026, and are indicative of rates set by public sector OMCs. Consumers are advised to check the official website of their respective LPG provider (IOCL, BPCL, HPCL) for the most accurate and up-to-date pricing in their city.
.jpg)
0 Comments