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LPG Shortage In India: Why Gas Cylinders Are In Short Supply, Latest Prices In Your City, What Govt Says
LPG Shortage In India: Why Gas Cylinders Are In Short Supply, Latest Prices In Your City, What Govt Says
LPG Gas Cylinder Price Today: India is facing a temporary shortage of LPG cylinders in several cities as a sharp rise in demand and supply constraints have disrupted distribution in parts of the country. The situation is coupled with the latest price hike in both domestic and commercial LPG cylinders.
Oil marketing companies have raised the price of the 14.2 kg domestic LPG cylinder by Rs 60 and the 19 kg commercial cylinder by Rs 144 across the country. The revised prices came into effect on March 7, 2026.
The supply pressure is being attributed to multiple factors including higher seasonal consumption, logistical disruptions and increased global energy costs linked to geopolitical tensions due to the Iran-US-Israel war.
After the latest revision, the price of a 14.2 kg domestic LPG cylinder in India’s four major metro cities is as follows:
The prices reflect a Rs 60 increase compared with the previous rates.
Prices vary across cities due to transportation costs and state-level taxes.
Businesses such as restaurants and hotels that use 19 kg commercial cylinders have also seen a sharp increase in prices.
The commercial cylinder price has increased by Rs 144 across the country.
Among major states, Bihar currently has one of the highest domestic LPG prices at Rs 1,002.50, while several northeastern states are even costlier due to transportation expenses.
On the other hand, Maharashtra (Rs 912.50) and Delhi (Rs 913.00) remain among the relatively cheaper markets for LPG cylinders.
Several regions have reported delays in LPG cylinder delivery as distributors struggle to meet demand. Reports suggest that the supply tightness is largely due to a combination of factors.
First, domestic LPG consumption has surged in recent months as more households rely on LPG for cooking. India is one of the world’s largest LPG consumers and demand tends to rise sharply during certain seasons.
Second, global energy markets remain volatile, particularly after the escalation of tensions in the Middle East that pushed crude oil and energy prices higher. Since India imports a large portion of its LPG requirements, global price movements directly affect supply costs and availability.
US-Israel strikes on Iran (February 28) triggered Iranian retaliation that hit Qatar’s Ras Laffan LNG facility, the world’s largest at 82 mmtpa, nearly 25% of global LNG supply. The Strait of Hormuz is effectively blocked for energy shipments. Asian spot LNG prices have surged from about $10.5/mmbtu to over $25/mmbtu for April 26 delivery. A 55-65% of India’s LNG imports transit through Hormuz; Qatar alone is 35-40% of India’s LNG imports and about 20% of domestic gas demand.
Third, logistical bottlenecks and transportation constraints have slowed distribution in some regions, leading to temporary shortages at the distributor level.
Government officials have indicated that the shortage is temporary and supplies are being stabilised through increased imports and improved distribution.
Restaurant bodies and LPG distributors say the shortage is largely affecting commercial LPG cylinders used by hotels, restaurants and catering services, while household supply is being prioritised.
The Bangalore Hotels Association said the halt in commercial cylinder supply could affect essential services dependent on food establishments.
“The supply of gas cylinders for commercial use has been stopped from today. Essential services like senior citizens, students and hospitals rely on it. Immediate action is expected from Union Ministers to resume commercial gas supply," the association said in a notice.
National Vice President of the LPG Association RK Gupta said commercial LPG cylinders were not being issued to most establishments.
“Commercial cylinders have not been issued since yesterday, except for hospitals and educational institutions. The next booking will be allowed after a 25-day inter-booking period to avoid hoarding, and there is no shortage as claimed by oil companies," Gupta said.
However, distributor bodies insist the situation is being managed and supply is continuing.
Executive President of the All India LPG Distributors Federation, PN Seth, said distribution of both domestic and commercial cylinders was ongoing.
“There is no shortage, and supply of commercial and domestic cylinders is continuing as usual. Discussions are being held with distributors and stakeholders to ensure smooth supply," Seth said.
Federation President Chandra Prakash said authorities are prioritising domestic LPG supply.
“The government, oil companies and distributors are focused on domestic cylinders first. Essential commercial services like hospitals are prioritised, but supply to restaurants has been temporarily halted," he said.
The Union government has taken a series of measures to stabilise LPG supply and manage fuel resources amid the geopolitical disruptions in West Asia.
Authorities have invoked the Essential Commodities Act (EC Act) to secure the country’s energy supply. Officials said the move allows the government to monitor production, stocks and distribution more closely and prevent hoarding.
To deal with supply disruptions linked to shipping risks in the Strait of Hormuz, the government has ordered a reprioritisation of fuel resources.
Refineries have been directed to increase LPG production specifically for household consumption, with domestic LPG supply receiving the highest priority.
Under the revised allocation framework, domestic piped natural gas, CNG for transport and essential pipeline operations are receiving up to 100% supply, while fertiliser plants have been allocated 70% of their requirement. Other industrial consumers and tea industries are receiving around 80% of their six-month average supply.
The government has also introduced a 25-day inter-booking period for LPG cylinders to prevent hoarding and black marketing.
To address concerns from the hospitality sector, Union Petroleum Minister Hardeep Singh Puri has formed a three-member committee comprising executive directors from Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum. The panel will examine the grievances of restaurant and hotel associations and review their commercial LPG requirements.
Sources told news agency ANI that fresh consignments of LPG and LNG are expected soon and the country’s refining capacity remains strong.
“We were in crisis earlier, but today we are not in any crisis of petroleum products. Indian refineries are running at full capacity as they were operating before the Iran-Israel conflict," a source said.
“We are sourcing 70% of our crude oil supply from non-Strait of Hormuz sources. We entered this disruption better prepared," the source added.
Officials also said the government has not taken any decision to curb the export of refined petroleum products, and India is expected to recover faster once the West Asia crisis stabilises.
Energy analysts say the current supply tightness is likely to ease once additional imports arrive and distribution normalises. However, LPG prices will continue to remain sensitive to movements in global energy markets and currency fluctuations.
For households, the latest price revision means higher cooking costs, while restaurants and food businesses will face increased operating expenses due to the rise in commercial cylinder prices.
Source: News18
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