LPG Price Hike In India Amid US Israel Iran War: The price of domestic cooking gas cylinders has increased across India, effective Saturday, March 7. According to the latest information, the price of a domestic LPG cylinder containing 14.2 kg of LPG has increased by Rs 60 across the country.
Currently, if you are using an LPG cylinder of 14.2 kg capacity, you will have to pay Rs 913 for it, whereas earlier, the price of the cylinder was Rs 853. Similar increases have been implemented across other cities of India as well. For example, if you are using an LPG cylinder in Mumbai, you will now have to pay Rs 912.50 for it, whereas earlier, the price of the cylinder was Rs 852.50.
On the other hand, if you are using an LPG cylinder in Kolkata, you will now have to pay Rs 930 for it, whereas earlier, the price of the cylinder was Rs 879. Likewise, if you are using an LPG cylinder in Chennai, you will now have to pay Rs 928.50 for it, whereas earlier, the price of the cylinder was Rs 868.50.
Is the Iran War Behind India’s LPG Price Hike?
The war between Iran and the United States has led to concerns about global energy security, considering the Strait of Hormuz, which is an important shipping lane for a large proportion of the world's energy trade passing through it. India is dependent on energy imports, and it has been estimated that around 40-50% of India's crude oil imports pass through this route. If the conflict between Iran and the United States escalates, it may impact the energy trade passing through this route, and hence, the crude price may increase, impacting India's fuel costs and LPG prices. India's energy security is also linked to LPG, considering that a large proportion of India's LPG imports are from Gulf countries, and most of it passes through this route. However, it has been stated that India has managed to diversify its energy security and has enough fuel stocks, which reduces the impact of the conflict between Iran and the United States.
Commercial LPG Cylinder Price Hiked by Rs 115
The price increase also affects businesses that rely heavily on LPG for daily operations, such as hotels, restaurants and catering services.
The cost of a 19-kg commercial LPG cylinder has been raised by Rs 115 starting March 7.
In Delhi, the commercial cylinder will now cost Rs 1,883, up from Rs 1,768.50 earlier. In Mumbai, the price has increased from Rs 1,720.50 to Rs 1,835.
In Kolkata, the new rate stands at Rs 1,990, compared to Rs 1,875.50 earlier. In Chennai, the price has risen from Rs 1,929 to Rs 2,043.50.
First Major LPG Price Revision Since April 2025
This increase marks the first major change in domestic LPG prices since April 2025, when the non-subsidised price of a 14.2-kg cylinder in Delhi was fixed at Rs 853.
The latest hike is expected to impact household budgets as well as operating costs for businesses that depend on LPG for cooking and other activities.
Government Assures No Shortage of Fuel in India
The price hike comes at a time when global discussions about energy supply have intensified due to tensions in West Asia, which could potentially affect international oil routes.
However, the government has reassured citizens that India’s energy supply remains stable.
Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said the government’s main focus is to ensure fuel availability for consumers.
“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,” Puri said in a post on X.
Indian Oil Rejects Rumours About Petrol and Diesel Shortage
Amid speculation on social media about possible fuel shortages, Indian Oil Corporation clarified that such claims are false.
The company said the country currently has adequate reserves of petrol and diesel and that supply systems are operating smoothly.
“India has sufficient fuel stocks, and supply and distribution networks are functioning normally. IndianOil is committed to maintaining uninterrupted fuel supply across the country,” the company said in a statement on X.
India Diversifying Crude Oil Imports to Strengthen Energy Security
Government officials also said that India remains in a “very comfortable position” regarding supplies of crude oil, petroleum products and LPG.
In recent years, the country has diversified its crude oil import sources to reduce dependence on any single route, especially amid concerns about disruptions in the Strait of Hormuz, one of the world’s key oil shipping channels.
Russia has emerged as a major supplier for India. While Russia accounted for only 0.2 per cent of India’s crude imports in 2022, its share has increased significantly in recent years.
India Increasing LPG Production and Imports
To maintain adequate supply, authorities have asked LPG refineries to boost production.
At the same time, India has also increased LPG imports. Indian public sector oil companies have signed a one-year agreement to import around 2.2 million tonnes of LPG from the US Gulf Coast for 2026.
Shipments under this contract began arriving in January, helping ensure steady availability of cooking gas despite uncertainties in global energy markets.