The news of rising prices of LPG cylinders and reduction in supply in some cities has increased the concern of the people. Oil companies have recently increased the prices of both domestic and commercial cylinders. The government claims that this has happened due to rising international prices and ongoing tension in the Middle East.
Impact of Middle East crisis
A major reason for the increase in LPG prices in India is believed to be the increasing tension between Iran and Israel. Oil and gas prices have increased across the world due to supply disruption in the Strait of Hormuz near Iran. Since India imports a large part of its LPG requirement, the increase in international prices is directly impacting the country.
India depends on imports
About 60 percent of India’s LPG demand is met by imports. Of this, about 80-90 percent comes from Middle East countries like Saudi Arabia, Kuwait, Qatar and United Arab Emirates. Therefore, any problem in this sector has an immediate impact on India’s gas market.
How much did gas prices increase?
On March 7, 2026, oil companies increased the price of domestic LPG cylinder by approximately ₹60. As a result, a 14.2 kg non-subsidized cylinder now costs ₹913 in Delhi. The price of a 19 kg commercial cylinder has increased by about ₹114-₹115 to about ₹1,883. Some hotels and restaurants in Mumbai, Bengaluru and other big cities have also complained of shortage in gas supply.
government action
To deal with the situation, the Petroleum Ministry has directed oil refineries to increase LPG production. To give priority to domestic customers and to prevent black marketing of gas, a gap of 25 days has been kept between cylinder booking. Important sectors like hospitals and educational institutions are also being given priority.
No need to panic: Government
Petroleum Minister Hardeep Singh Puri has said that there is no shortage of gas for domestic customers and the government is continuously taking steps to maintain the supply. He also asked people not to panic and hoard extra cylinders.
