New Delhi

The price of domestic cooking gas Liquefied Petroleum Gas (LPG) was increased by ₹60 per cylinder on Saturday, taking the cost of a 14.2-kg cylinder in Delhi to ₹913 from ₹853 earlier, according to data on the website of Indian Oil Corporation.

The hike, effective March 7, is the second increase in less than a year. The last revision came in April 2025 when prices were raised by ₹50 per cylinder.

Beneficiaries of the Pradhan Mantri Ujjwala Yojana will also face the same increase. However, after factoring in the ₹300 subsidy provided for up to 12 refills annually, they will now pay ₹613 per cylinder.

Along with domestic LPG, the price of commercial LPG used by hotels and restaurants was also raised by ₹114.50 per 19-kg cylinder. The rate in Delhi has increased to ₹1,883. This follows another ₹28 hike implemented on March 1, taking the total increase in commercial LPG prices this year to ₹302.50.

Industry officials said the price hike comes amid a sharp surge in global energy prices triggered by the ongoing conflict in West Asia after strikes by the United States and Israel on Iran.

The escalation has disrupted tanker movement through the Strait of Hormuz, a crucial shipping route between Iran and Oman used for exporting oil and gas from the Middle East. The disruption has sharply reduced shipments and pushed up global crude and gas prices.

Since the conflict began on February 28, benchmark crude prices have surged. West Texas Intermediate crude futures rose more than 35 per cent in a week to close at about USD 90.90 per barrel, while Brent crude jumped around 28 per cent to settle near USD 92.69 per barrel.

Asian spot prices of Liquefied Natural Gas have also spiked to about USD 25.40 per million British thermal units, a three-year high, amid fears of supply disruptions.

The tightening global energy market has pushed up international benchmarks for propane and butane — key components used to produce LPG — leading to higher import costs for countries like India.

Despite the hike, industry officials said LPG prices in India remain among the lowest compared with neighbouring countries.

In other metro cities, the price of a domestic cylinder now stands at ₹912.50 in Mumbai, ₹939 in Kolkata and ₹928.50 in Chennai.

Rates vary across states depending on local taxes such as VAT.

India relies heavily on imports to meet its LPG demand. Out of the 31.3 million tonnes consumed in 2024-25, only about 12.8 million tonnes were produced domestically. Of the remaining imports, about 85–90 per cent come from Gulf nations such as Saudi Arabia and pass through the Strait of Hormuz.

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With the strategic waterway effectively blocked amid the regional conflict, the Indian government has invoked emergency powers to direct refineries to increase domestic LPG production in order to stabilise supplies.