Households across India now face higher cooking costs as domestic Liquefied Petroleum Gas (LPG) cylinder prices increased by ₹60, effective March 7, 2026. This significant hike impacts millions, bringing the price of a 14.2-kg non-subsidised cylinder in Hyderabad to ₹965. The increase is attributed to rising global energy prices, fueled by ongoing geopolitical tensions in West Asia.[goodreturns+3]
Nationwide Price Surge
The price adjustment by state-owned oil marketing companies means a standard 14.2-kg domestic LPG cylinder now costs ₹913 in Delhi, up from its previous price of ₹853. In Mumbai, consumers are paying ₹912.50 for the same cylinder, an increase from ₹852.50. Kolkata residents now see their cylinders priced at ₹939, rising from ₹879. Chennai also experienced the ₹60 jump, with a 14.2-kg cylinder now costing ₹928.50, compared to ₹868.50 previously.[m+38]
This marks the second price increase for domestic LPG in less than a year. The previous hike occurred in April 2025. Government sources indicated the current hike was necessary due to a spike in global energy prices. Despite the increase, officials noted that India's LPG prices remain lower than in many neighboring countries.[goodreturns+31]
Impact on Households and Subsidies
The ₹60 increase directly affects household budgets, adding to the cost of daily living. For an average family of four, consuming approximately four to five cylinders per year, the hike translates to an additional cost of about 80 paisa per day, or 20 paisa per person daily. This calculation offers aperspective on the daily financial impact on individual consumers.[m+1]
However, beneficiaries of the Pradhan Mantri Ujjwala Yojana will continue to receive a subsidy of ₹300 per cylinder. This means the effective cost for these over 10 crore low-income households, who received free LPG connections since 2016, will be ₹613 for a 14.2-kg cylinder. The subsidy aims to cushion these households from the full impact of global price fluctuations.[m+15]
Commercial LPG Also Costlier
The price revision extends beyond domestic cylinders. Commercial LPG, used by establishments like hotels, restaurants, and catering services, also saw a substantial increase. The price of a 19-kg commercial LPG cylinder jumped by ₹114.5, or in some reports, ₹115, across India. This is the second hike for commercial cylinders in March alone, following an increase of ₹28 to ₹31 on March 1, 2026.[m+14]
The cumulative increase for commercial LPG in 2026 has been significant, rising by approximately ₹302.50. This rise is expected to impact operating expenses for businesses reliant on commercial cooking gas, potentially leading to adjustments in their pricing.[m+11]
Global Factors and Future Outlook
The primary driver for these price adjustments is the volatility in international crude oil and gas markets. Ongoing tensions and conflicts in the West Asia region have disrupted global energy supply chains, pushing up benchmark prices for propane and butane, which are key components of LPG. India imports over 60% of its LPG requirements, making it highly susceptible to these global market shifts.[m+14]
Despite the rise in LPG prices, government sources have clarified that an immediate increase in petrol and diesel prices is unlikely. State-owned oil marketing companies possess sufficient financial capacity to absorb potential increases in crude oil costs without immediately passing them on to consumers at the fuel pump. Officials stated that the government aims to balance pricing strategies, allowing oil firms to recover past losses during periods of lower crude prices while shielding consumers when global rates climb.[thenewsminute+12]
The government has also invoked emergency powers under the Emergency Commodities Act, 1955. This directive aims to increase LPG production for domestic consumers to mitigate any supply constraints arising from the ongoing conflict. Industry experts continue to monitor the geopolitical situation, as it remains a critical factor influencing future energy prices.[news24online+2]
