The price of domestic cooking gas LPG in India has been increased by ₹60 per cylinder, reflecting rising global energy costs linked to the ongoing West Asia conflict.

The new price revision came into effect on March 7, 2026, according to information published on the Indian Oil Corporation (IOC) website.

Following the increase, the price of a 14.2 kg non-subsidised LPG cylinder in Delhi has reached ₹913.

The hike mainly affects households that purchase LPG cylinders without government subsidies, which includes a large number of urban and middle-class consumers.

What the New LPG Price Means for Consumers

The non-subsidised LPG cylinder is widely used by households that do not receive benefits under the Pradhan Mantri Ujjwala Yojana (PMUY).

Under the revised pricing:

• Price of a 14.2 kg domestic LPG cylinder in Delhi: ₹913

• Increase announced: ₹60 per cylinder

• Effective date: March 7, 2026

Consumers in other cities may see slightly different prices depending on local transportation and distribution costs.

The increase adds to the monthly household expenses of millions of families who depend on LPG for cooking.

Impact of the West Asia Conflict on Energy Prices

The price hike has been linked to rising international energy costs caused by the ongoing conflict in West Asia.

The region is one of the largest oil-producing areas in the world, and any geopolitical tension there can significantly affect global oil markets.

Conflicts or disruptions in the region often lead to:

• Higher crude oil prices

• Increased shipping and insurance costs

• Volatility in global energy supply chains

Because India imports a large portion of its energy needs, changes in international prices often directly affect domestic fuel rates.

Role of Oil Marketing Companies

In India, state-owned oil marketing companies such as Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited periodically revise LPG prices.

These revisions are typically based on factors such as:

• International crude oil prices

• Exchange rates

• Transportation and logistics costs

• Global demand and supply conditions

When international prices increase significantly, oil companies often adjust domestic LPG prices accordingly.

Who Gets Subsidised LPG

The Pradhan Mantri Ujjwala Yojana (PMUY) is a government initiative designed to provide subsidised LPG connections to economically weaker households.

Under the scheme:

• Eligible beneficiaries receive financial support for LPG connections

• Subsidies help reduce the effective cost of cylinders

• The program aims to promote clean cooking fuel and reduce reliance on firewood or coal

The current LPG price hike primarily affects consumers who purchase cylinders at the market price without subsidy support.

LPG’s Role in Indian Households

Liquefied Petroleum Gas (LPG) is one of the most widely used cooking fuels in India.

It is preferred by households because it:

• Burns cleanly

• Produces less indoor pollution

• Is easy to store and transport

Government programs over the past decade have significantly increased LPG penetration across both urban and rural areas.

As a result, changes in LPG pricing now have widespread economic and social impact.

Economic Implications of Fuel Price Changes

Fuel price adjustments often influence the overall cost of living.

Higher LPG prices can lead to:

• Increased household expenses

• Pressure on middle-income families

• Potential impact on inflation

Energy prices also affect other sectors such as transportation, manufacturing, and agriculture, making them a key factor in economic planning.

Government’s Energy Policy Challenges

India faces a complex challenge in managing energy affordability and supply security.

While the country aims to protect consumers from sudden price shocks, it must also deal with fluctuating global energy markets.

Policymakers often try to balance:

• Consumer protection

• Fiscal stability

• Energy supply security

Measures such as subsidies, strategic oil reserves, and diversification of energy imports are used to manage these challenges.

Outlook for Energy Prices

The future trajectory of LPG prices will largely depend on global oil market trends and geopolitical developments in energy-producing regions.

If tensions in West Asia continue or escalate, international crude oil prices could remain volatile, which may influence domestic fuel costs.

At the same time, efforts to increase renewable energy use and diversify energy sources are expected to play a role in reducing long-term dependence on imported fuels.

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