LPG cylinder prices surge by Rs 60 due to West Asia conflict

Domestic LPG cylinder prices have seen a substantial hike of ₹60, becoming effective from March 7, 2026. This increase is attributed to the escalating tensions and resultant surge in global energy prices stemming from the ongoing conflict in West Asia. The price of a 14.2 kg non-subsidised domestic LPG cylinder in Delhi has now reached ₹913, up from ₹853. This marks the second price revision for domestic LPG in approximately 11 months, with the previous increase of ₹50 occurring in April 2025. The impact of this price hike extends to beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY), who will now pay ₹613 per cylinder. While they receive a subsidy of ₹300 per bottle for up to 12 refills annually, the increased base price means their out-of-pocket expense also rises. Concurrently, commercial LPG cylinder prices, used by establishments like hotels and restaurants, have also been significantly affected. The 19 kg commercial cylinder price in Delhi has risen by ₹114.5 to ₹1,883. This follows a previous increase of ₹28 on March 1, 2026, and contributes to a cumulative rise of ₹302.5 in commercial LPG rates in the current year. The disruption in energy supply chains, particularly through the Strait of Hormuz, where a significant portion of India's LPG imports transit, is a primary driver for these price adjustments. India imports over 60% of its LPG requirement, making it vulnerable to global price volatility. To mitigate potential shortages and ensure domestic availability, the Indian government has invoked emergency powers under the Essential Commodities Act, 1955. This directive mandates oil refining companies to maximize LPG production and prioritize its supply to public sector Oil Marketing Companies (OMCs) for domestic consumption, even diverting feedstock from petrochemical production if necessary. This measure aims to secure the supply for India's over 33.3 crore LPG consumers, including 10.5 crore PMUY beneficiaries. Despite the recent hike, officials suggest that LPG in India remains competitively priced compared to several other countries. The government also indicated that there would be no immediate revision in petrol and diesel prices, as oil marketing companies have sufficient cushion to absorb current crude price fluctuations. However, the broader economic implications of sustained high energy prices, including potential impacts on inflation, the current account deficit, and economic growth, are a matter of concern, with reports suggesting that a 10% increase in oil prices could directly impact India's Wholesale Price Index and potentially widen the current account deficit. The price of a 14.2 kg domestic LPG cylinder in Hyderabad was reported as ₹905.00 in early March 2026, with some sources indicating no change in March compared to February. However, the Siasat.com article, citing a March 8, 2026, publication date, clearly states the hike has taken effect, with prices in major cities reaching the stated figures. The discrepancy might stem from different reporting times or the distinction between subsidised and non-subsidised rates, though the article indicates the increase applies broadly. The underlying cause of the price surge is directly linked to the geopolitical situation in West Asia, which has disrupted global energy markets and supply routes, leading to increased international energy benchmarks and, consequently, higher domestic fuel prices in India. The government's proactive measures, including invoking emergency powers, underscore the seriousness of the supply chain concerns, aiming to balance energy security with the affordability for its large consumer base.

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