LPG Price Hike: 14.2-kg Cylinder Rates Surge Amid Fuel Crisis

As of March 12, 2026, households across India are feeling the pinch as domestic LPG cylinder prices have surged amid an escalating fuel crisis in West Asia. Earlier this month, state-run oil marketing companies (OMCs) announced a steep hike of ₹60 for the 14.2-kg non-subsidized domestic cylinder, citing significant supply chain disruptions.

LPG Prices in Metro Cities Today

The cost of a domestic LPG cylinder varies across the country due to differences in local taxes (VAT) and transportation logistics. Here are the current rates for a 14.2-kg cylinder in major Indian metros:

Note: For Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries, the effective price remains lower due to the ongoing ₹300 per cylinder subsidy provided by the Central Government.

Why Are Prices Rising? The West Asia Fuel Crisis

The sudden spike in prices is primarily driven by geopolitical tensions in West Asia, specifically the widening conflict involving Iran. This has led to a “fuel crisis” for India due to the following factors:

• Strait of Hormuz Disruption: Nearly 85–90% of India’s LPG imports pass through this critical waterway. With the passage effectively blocked or heavily restricted, cargo movement has tightened.
• Import Dependency: India imports roughly 62–67% of its total LPG requirement. Any volatility in international benchmarks—like the Saudi Contract Price (CP)—directly impacts domestic rates.
• Supply Shortages: Major exporters like Iraq and Kuwait have reportedly cut output, leading to panic booking and a surge in demand for electrical alternatives like induction cooktops.

Commercial LPG Feeling the Heat

While domestic consumers are facing a ₹60 hike, the commercial sector has been hit even harder. The 19-kg commercial cylinder, used by hotels and restaurants, saw a massive increase of ₹114.50 to ₹144.00 this month. In Delhi, a commercial cylinder now costs ₹1,884.50, forcing many eateries to hike menu prices or switch to alternative cooking methods.

Government Response and Essential Measures

In response to reports of hoarding and supply panic, the Indian government has invoked the Essential Commodities Act, 1955. This allows authorities to regulate distribution and prevent black-marketing. Furthermore, the Ministry of Petroleum has urged citizens not to engage in “panic booking,” assuring that priority is being given to essential sectors like hospitals and schools.

As the global energy market remains volatile, consumers are advised to check official OMC websites (IOCL, BPCL, and HPCL) for daily updates, as prices are subject to frequent revisions based on the evolving international situation.