LPG price increase: Domestic LPG price hiked by ₹60, commercial LPG price rises too; check key details and stocks in focus

The hike is followed by the spike in global energy rates following the West Asia crisis, which weighed on the world's third-largest energy consumer.

Non-subsidised LPG -- the one that common households use in kitchens -- will now cost ₹913 per 14.2-kg cylinder in Delhi as against ₹853 previously, according to the Indian Oil Corporation (IOCL) website.

Ujjwala Yojana beneficiaries -- the over 10 crore poor who have got free LPG connections since 2016 -- will also have to bear the same amount of price increase. They will now pay ₹613 per 14.2 kg cylinder after accounting for a subsidy of ₹300 per bottle they get for up to 12 refills in a year.

"Top government sources said the increase was necessitated because of a spike in global energy prices. Despite the increase, the price is less than the ₹1,050 per 14.2-kg cylinder rate required to break even at cost," the PTI report added.

They said, considering an average consumption of 4-5 cylinders per year per household, the increase translates to 80 paisa per day for a family of four or just 20 paisa per person.

Even at the increased prices, LPG in India is cheaper than in most countries in the world, they said, adding cooking costs ₹1,207 per bottle in Kathmandu, ₹1,241 in Sri Lanka, and ₹1,046 in Pakistan.

No hike in petrol, diesel prices

Sources ruled out any immediate increase in petrol and diesel prices, as three fuel marketing companies – Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) – with bumper profits earlier this year had enough financial muscle to absorb such an impact.

Retail petrol and diesel prices have been frozen since April 2022, with fuel retailers absorbing losses when crude prices are high and making profits when rates are low.

The LPG price rise on Saturday is the second increase in rate in 11 months. The price was last hiked by ₹50 in April last year.

Commercial LPG price also goes up

Alongside this, the price of commercial LPG – the one used by establishments such as hotels and restaurants – was increased by ₹114.5 per 19-kg cylinder. It now costs ₹1,883 in Delhi. This increase comes on top of the ₹28 per 19-kg cylinder rise effected on March 1.

Commercial LPG rate has risen by ₹302.50 this year.

Commercial LPG is widely used by restaurants, hotels, catering, and small industries, so cost pressures can impact companies linked to hospitality such as Jubilant FoodWorks, Westlife Foodworld, and Indian Hotels Company, among others.

Reasons for the price hike

Officials said the increase follows a steep rise in global energy prices since the US and Israel's attack on Iran last weekend triggered a wider military conflict in the oil- and gas-rich Middle East.

The conflict has led to a near halt in tanker movement through the Strait of Hormuz -- the narrow but critical sea lane between Iran and Oman used by Middle Eastern producers to export oil and gas to global markets. The disruption has sharply curtailed energy shipments from the region, triggering a spike in global oil and gas prices.

Oil prices jump past $90/ bbl

Since the conflict broke out on February 28, US crude soared 35.63% for the biggest weekly gain in the history of futures contracts dating back to 1983. West Texas Intermediate (WTI) futures closed at $90.90 per barrel. Brent jumped about 28% for its biggest weekly gain since April 2020 to settle at $92.69 per barrel.

Asian spot prices for liquefied natural gas (LNG) have also jumped to about $25.40 per million British thermal units (MMBtu) -- a three-year high and more than double last week's levels of around $10 per MMBtu amid fears of supply disruptions and halted exports from Qatar.

LPG markets have also tightened as shipments from key Gulf exporters face logistical disruptions, pushing international propane and butane benchmarks higher and raising concerns over supply availability for major importers such as India.

In Mumbai, non-subsidised LPG now costs ₹912.50, ₹939 in Kolkata, and $928.50 in Chennai, according to the IOC website.

Rates differ from state to state depending on the incidence of local sales tax or VAT.

Strait of Hormuz's significance

The Strait of Hormuz is critical conduit for India's energy imports, with roughly half of the crude oil the country buys from overseas transiting through the narrow waterway. In addition, nearly 40% of India's natural gas imports, largely in the form of LNG from Gulf suppliers like Qatar and the UAE, also pass through the strait.

For LPG, the strait is more important. India consumed 31.3 million tonnes of LPG in 2024-25, of which only 12.8 million tonnes were produced domestically, with the remainder imported. Of the imported quantity, 85-90% come from countries like Saudi Arabia that rely on the Strait of Hormuz for transit.

The strait has been effectively blocked following a week-old escalation in the region, after US and Israeli strikes on Iran prompted Tehran to retaliate against US bases in neighbouring countries.

To augment domestic supplies, the government on Friday invoked sparingly used emergency powers to direct oil refineries to ramp up LPG production.