LPG (Liquefied Petroleum Gas) is an essential part of daily life for most Indian households. Any change in its price directly affects monthly expenses. In March 2026, government oil companies like Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum increased the price of domestic LPG cylinders by ₹60 per cylinder, effective from March 7, 2026. This hike comes after nearly 11 months and has created concern among middle-class families.

Latest LPG Prices in Major Cities

After the price revision, the cost of a 14.2 kg domestic LPG cylinder has increased across major cities. In Delhi, the price is now ₹913, up from ₹853. Mumbai stands at ₹912.50, Kolkata at ₹939, Chennai at ₹928.50, and Bengaluru at ₹915.50. Hyderabad has one of the highest rates at ₹965 per cylinder. Other cities like Lucknow and Patna have even higher prices, with Patna reaching ₹1,002.50.

The variation in prices across cities is mainly due to differences in local taxes, transportation costs, and state VAT policies.

Reasons Behind the Price Increase

The recent price hike is largely influenced by global factors. One major reason is geopolitical tensions in the Middle East, particularly involving the United States, Israel, and Iran. These tensions have affected oil supply routes, especially through the Strait of Hormuz, which is a key shipping route.

Another important factor is the rise in the Saudi Contract Price (CP), which is the benchmark used for LPG pricing in India. Since India imports a large portion of its LPG, any increase in global prices directly impacts domestic rates.

Difference Between Domestic and Commercial Cylinders

It is important to understand the difference between domestic and commercial LPG cylinders. Domestic cylinders are 14.2 kg and are used for household cooking. These may be eligible for government subsidies.

Commercial cylinders, on the other hand, weigh 19 kg and are used by hotels, restaurants, and businesses. These cylinders do not receive any subsidy. Currently, commercial LPG prices are much higher. For example, in Delhi, the price is around ₹1,884.50, while in Chennai it goes above ₹2,000.

This increase in commercial LPG prices can also lead to higher food prices in restaurants and eateries.

Subsidy and Government Support

The government provides some relief through schemes like the Pradhan Mantri Ujjwala Yojana. Under this scheme, eligible families receive a subsidy of around ₹300 per cylinder through Direct Benefit Transfer (DBT) into their bank accounts.

To avail of this benefit, users must link their Aadhaar card, bank account, and LPG connection. Consumers can check subsidy status on official portals like mylpg.in or PAHAL.

Tips for Consumers

With rising LPG prices, it is important for households to manage their budget wisely. Consumers should regularly check updated prices through official apps such as MyLPG or their gas provider’s app.

In the long term, people can consider alternatives like PNG (Piped Natural Gas) or induction cooktops to reduce dependence on LPG. Efficient usage of gas, such as avoiding wastage and using proper cooking techniques, can also help save money.

The LPG price hike in March 2026 has added pressure on household budgets across India. While global factors are largely responsible, the impact is felt directly by consumers. Government subsidies offer some relief, but careful planning and exploring alternatives can help families manage their expenses better.