As the conflict in Iran enters its third week, India faces a tightening supply of cooking gas, affecting both domestic and commercial LPG cylinders. While the central government reassures citizens that domestic reserves are sufficient, rising international tensions are reflected in higher prices across major cities.
Market Performance: Supply Pressure Hits LPG Prices
India, the world’s third-largest oil consumer, depends heavily on West Asia for its energy needs, sourcing over 40% of its crude oil and 90% of its LPG from the region. The recent closure of the Strait of Hormuz has disrupted these supply routes, prompting the country to turn to West Africa and Russia to fill the gap.
However, alternative sources come with added costs, including higher freight and insurance, creating upward pressure on cylinder prices.
- Domestic households remain a priority in distribution.
- Commercial consumers, including hotels and restaurants, are receiving only one-fifth of their usual supply.
Change in LPG Prices on 20 March
The government has implemented a price hike to manage supply disruptions:
- 14.2 kg domestic cylinder – ₹60 increase
- 19 kg commercial cylinder – ₹144 increase
These changes are already reflected across major cities. Prices have not changed further since the initial revision.
LPG Cylinder Prices in Major Indian Cities
New Delhi | ₹913 | ₹1,884.50 |
Mumbai | ₹912.50 | ₹1,836 |
Kolkata | ₹939 | ₹1,988.50 |
Chennai | ₹928.50 | ₹2,043.50 |
Hyderabad | ₹965 | ₹2,105.50 |
Lucknow | ₹950.50 | ₹2,007 |
Bengaluru | ₹915.50 | ₹1,958 |
Patna | ₹1,002.50 | ₹2,133.50 |
Price differences across cities reflect local Value Added Tax (VAT) and freight charges.
LPG Prices Remain Stable for PMUY Beneficiaries
For low-income households under the Pradhan Mantri Ujjwala Yojana (PMUY), LPG prices remain unchanged. The scheme currently supports over 10 crore gas connections, ensuring affordable cooking fuel for the most vulnerable households.
India Secures Safe Passage for LPG Ships
In a positive move for energy security, India has successfully coordinated safe passage for LPG vessels through the Strait of Hormuz.
- Two Indian LPG ships recently navigated the region without disruption.
- Ministry of External Affairs confirmed ongoing diplomatic efforts to ensure both energy supplies and the safety of Indian citizens in the Gulf.
Randhir Jaiswal, spokesperson for the Ministry, emphasized that India continues to work with stakeholders to maintain uninterrupted LPG flow amidst global tensions.
Central Government Announces ₹497 Crore Export Relief Package
To offset the impact of West Asia disruptions on trade, the government has launched a ₹497 crore RELIEF package.
- RELIEF: Resilience and Logistic Intervention of Export Facilitation
- Aim: Support exporters affected by logistical challenges in the region
The package is part of India’s broader efforts to safeguard both energy security and economic stability during this turbulent period.
Summary
LPG cylinder prices on 20 March reflect global supply disruptions caused by the Iran conflict. While domestic households see manageable price increases, commercial users face tighter supplies. Strategic import diversifications, government-led relief packages, and safe passage coordination for LPG ships underscore India’s proactive approach to energy security.
- Domestic LPG: ₹913–₹1,002.50 across cities
- Commercial LPG: ₹1,836–₹2,133.50 across cities
- Prices stable for PMUY beneficiaries
- Government ensures safe import routes and export support
With ongoing geopolitical tensions, India’s efforts to maintain LPG availability highlight the importance of energy planning in turbulent times.
Source: Livemint

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