Cooking gas prices have risen in India as a domino effect of conflict in West Asia. Geopolitical tensions in the region have hit global oil markets, pushing crude oil and liquefied petroleum gas (LPG) benchmarks higher.
The hike has pushed up the cost of both domestic and commercial LPG cylinders amid supply disruptions. The price of a 14.2 kg gas cylinder for home cooking has increased ₹60, while the price of 19 kg commercial cylinder increased by ₹144 at the beginning of March in major cities and states of the country. No revisions have been made since then.
The increase followed a joint US-Israeli attack on Iran, followed by Tehran’s retaliation. The conflict has disrupted supply routes through the Strait of Hormuz, a critical waterway through which India receives 85-90% of its LPG imports from West Asian countries, including Saudi Arabia and Qatar.
LPG prices for the city
The following retail rates are currently active in major cities across India:
It is important to note that differences in LPG prices between states arise due to local value added tax (VAT) and transport charges.
LPG for low-income households
Although the government has increased the prices of commercial and domestic cylinders, LPG cylinder rates under the Pradhan Mantri Ujjwala Yojana (PMUY) remain unchanged, PTI reported earlier.
The scheme covers more than 10 million gas connections provided to low-income households across the country.
India guarantees that there will be no shortage of LPG
The Indian government says there is no shortage of cooking gas. However, the LPG crisis is having a wide-ranging impact on the hospitality industry, with several establishments temporarily suspending operations.
The shortage has also forced many Indian kitchens to remove some menu items, while hotels and restaurants have raised food prices to cope with higher cooking costs. In cities like Hyderabad, food businesses have even been forced to switch to firewood stoves as an alternative.
At the same time, the situation took on a strategic dimension. The Indian Navy has deployed two task forces of warships to ensure the safe transit of merchant vessels and tankers carrying gas and oil into the country through the Strait of Hormuz. To allow safe passage of Indian-flagged ships, Iran has asked for the exchange of three tankers seized by India, ANI reported earlier.
The number of LPG cylinder reservations is increasing
The petroleum ministry on Tuesday said online bookings of LPG cylinders have increased from around 84% to around 90% and delivery authentication code (DAC) coverage has expanded from 53% before the West Asia conflict to around 72%, aimed at preventing diversion of cylinders at the distributor level, Mint reported earlier.
The ministry further assured that no drying up has been reported from LPG distributors and “Several states and UTs including Bihar, Delhi, Haryana, Rajasthan, Manipur and Maharashtra have issued non-domestic LPG allocation orders in accordance with Government of India guidelines.
According to an official statement, domestic production of LPG at refineries increased by around 36%, providing relief to households and businesses across the country who have been looking for alternatives to cooking gas in recent weeks.
