LPG Cylinder Price Hike March 2026: Domestic LPG Up ₹60, Commercial Up ₹115 – Full City-Wise Rates, Reasons & Impact.

LPG Cylinder Price Hike in India: Major Increase Effective March 7, 2026

In a significant development affecting millions of households and businesses, LPG (liquefied petroleum gas) prices have been revised upward across India, effective from Saturday, March 7, 2026. The price of a standard 14.2-kg domestic LPG cylinder has increased by ₹60, while commercial LPG cylinders (19 kg) have seen a steeper hike of approximately ₹114.5 to ₹115 per cylinder. This marks the first major adjustment in domestic LPG prices in nearly a year and comes amid escalating global energy pressures.

State-owned oil marketing companies (OMCs) such as Indian Oil Corporation (IOC), Bharat Petroleum, and Hindustan Petroleum announced the revision, reflecting the sharp rise in international LPG benchmarks. According to IOC data, the non-subsidised domestic LPG cylinder in Delhi now costs ₹913, up from ₹853. This change directly impacts everyday cooking expenses for non-Ujjwala beneficiaries and adds to operational costs for restaurants, hotels, and other commercial users.

City-Wise Domestic LPG Cylinder Prices After March 2026 Hike

The LPG price increase is uniform in quantum across the country but varies slightly by city due to local taxes, transportation, and other factors. Here’s the updated list for major metros:

Delhi: ₹913 (increased from ₹853 by ₹60)
Mumbai: ₹912.50 (increased from ₹852.50 by ₹60)
Kolkata: ₹939 (increased from ₹879 by ₹60)
Chennai: ₹928.50 (increased from ₹868.50 by ₹60)

These rates apply to non-subsidised 14.2-kg domestic LPG cylinders, commonly used in urban and semi-urban households. The hike is attributed to a 16% surge in the Saudi Contract Price (a key international benchmark for LPG) between November 2025 and February 2026. Despite the increase, officials note that current domestic LPG prices remain below the fully market-determined rate, estimated at around ₹987 per cylinder in Delhi for March 2026.

Commercial LPG Cylinder Prices: Steeper Rise Hits Businesses Hard

Commercial LPG cylinders, primarily 19-kg units used by restaurants, hotels, caterers, and small industries, have faced repeated revisions. The latest hike of ₹114.5–₹115 per cylinder follows a smaller increase of ₹28 on March 1, 2026. Over the past three months (since December 2025), commercial LPG prices have cumulatively risen by ₹302.5, starting from ₹1,580.5.

Updated city-wise rates for 19-kg commercial LPG cylinders:

Delhi: ₹1,883 (up from ₹1,768.50)
Mumbai: ₹1,835 (up from ₹1,720.50)
Kolkata: ₹1,990 (up from ₹1,875.50)
Chennai: ₹2,043.50 (up from ₹1,929)

Commercial LPG prices are reviewed monthly based on global market trends, unlike domestic rates which see less frequent changes. This latest adjustment is expected to raise food prices in eateries and increase operational burdens for hospitality businesses already grappling with inflation.

Why the LPG Price Hike? Geopolitical Tensions in West Asia

The primary driver behind the LPG price hike is the ongoing conflict in West Asia, which has disrupted global supply chains and pushed up oil and gas prices. India imports over 60% of its LPG requirements, with 85-90% of shipments passing through the Strait of Hormuz—a critical chokepoint now facing heightened tensions, vessel warnings, and supply risks.

Officials from the Petroleum Ministry explained that the revision aligns domestic prices with international benchmarks like the Saudi Contract Price, which rose significantly in recent months. To mitigate immediate supply issues, the government invoked emergency powers under the Essential Commodities Act, 1955, directing refineries to ramp up LPG production for domestic consumers.

In FY 2024-25, India’s LPG consumption reached 31.3 million tonnes, while domestic production was only 12.8 million tonnes—highlighting heavy reliance on imports. The government has historically absorbed substantial losses to shield consumers; in 2024-25 alone, OMCs incurred around ₹39,000 crore in under-recoveries, with the Centre compensating ₹30,000 crore.

Impact on Pradhan Mantri Ujjwala Yojana Beneficiaries

The LPG price hike spares the most vulnerable households to some extent. Beneficiaries under the Pradhan Mantri Ujjwala Yojana (PMUY)—covering about 10.5 crore poor households out of India’s 33.3 crore LPG connections—continue to receive a subsidy of ₹300 per cylinder for up to 12 refills annually.

Under the new rates, Ujjwala beneficiaries will pay approximately ₹613 per cylinder (after subsidy), providing continued relief for low-income families. The scheme remains a key pillar of the government’s efforts to ensure clean cooking fuel access while cushioning against global volatility.

Government Response: Minister Hardeep Singh Puri Reassures No Shortage

Petroleum and Natural Gas Minister Hardeep Singh Puri addressed public concerns, emphasizing energy security. He stated: “Our priority is to ensure the availability of affordable and sustainable fuel for our citizens, and we are doing it comfortably. There is no shortage of energy in India, and there is no cause of worry for our energy consumers.”

The minister highlighted multi-layered strategies to buffer against global shocks, including diversified import sources and domestic production boosts. Importantly, retail petrol and diesel prices remain unchanged, as OMCs have sufficient cushions to absorb crude oil fluctuations for now.

Opposition Criticism: Burden on Inflation-Hit Households

The LPG price hike drew sharp reactions from opposition parties. Congress president Mallikarjun Kharge accused the government of failing to protect consumers: “First, the benefits of lower international prices were snatched from the public. Now, the sweat of the people is being extracted under the burden of inflation.”

Other leaders echoed concerns that the increase would exacerbate household expenses amid rising inflation. Critics argued that earlier declines in global crude prices were not fully passed on to consumers, while hikes are implemented swiftly.

Broader Implications for Indian Households and Economy

For the average Indian family, the ₹60 hike translates to higher monthly kitchen budgets—especially for those without subsidies. With LPG being the primary cooking fuel, repeated increases could shift reliance toward traditional biomass in rural areas or strain urban middle-class finances.

Businesses face compounded challenges: restaurants may pass on costs through menu price rises, contributing to food inflation. The hospitality sector, already recovering from past disruptions, could see squeezed margins.

On the positive side, the government’s continued subsidy support for PMUY beneficiaries and assurances of stable supply aim to limit widespread hardship. Long-term, experts suggest accelerating domestic LPG production and exploring alternative energy sources to reduce import vulnerability.

This LPG price hike in March 2026 underscores India’s delicate balance between global market realities and domestic welfare priorities. As geopolitical tensions persist, monitoring international energy trends will be crucial for future revisions.