The ongoing conflict in the Middle East and the effective suspension of trade through the key Strait of Hormuz have led to disruptions in LPG supplies to India, with New Delhi relying primarily on imports to meet its domestic needs.
India relies on imports to meet around 60% of its domestic LPG needs, and crucially, 90% of these imports come via the Middle East via the Strait of Hormuz.
Since the US and Israel launched joint strikes against Iran on February 28, sparking conflict across the Middle East, maritime traffic in the Strait of Hormuz has effectively ground to a halt, with tankers avoiding transit due to threats of attacks.
Following the suspension of trade, prices of domestic and commercial LPG cylinders have increased in India, although the central government has repeatedly assured citizens of adequate stocks and stable supply.
Change in LPG prices
To address this shortage, cooking gas was also brought under the Essential Commodities Act 1955 and the government introduced a tiered distribution strategy that prioritizes supply to households and limits supply to commercial establishments to one-fifth of their requirements.
LPG prices in India were last hiked in early March due to supply disruptions. The price of a 14.2 kg domestic LPG cylinder was increased by ₹50, while the price of a 19 kg commercial bottle has been increased ₹144.
No revisions have been made since then.
Domestic and Commercial LPG Price in Major Cities of India — Complete List
Below is a list of domestic and commercial LPG cylinder prices in major Indian cities.
Differences in LPG prices between cities in different states are due to local value added tax (VAT) and transport charges.
LPG prices for low-income households unchanged
Despite the increase in commercial and domestic LPG cylinders, prices for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries have remained unchanged, according to news agency PTI.
The scheme covers more than 10 million gas connections provided to low-income households across the country.
Gas allocations have risen to 50% of pre-crisis levels
The Union Ministry of Petroleum and Natural Gas on Saturday announced that the Center is increasing gas allocations to states to 50% of the pre-crisis level, with additional supply of 20% to be introduced from Monday, March 23.
In an official letter to all state and union territory (UT) chief secretaries, Petroleum Minister Neeraj Mittal said the increased allocation was aimed at supporting key sectors, especially those linked to food supply and public welfare, news agency ANI reported.
From Monday, the additional allocation of 20% will increase the total supply to 50% of the pre-crisis level, the paper said, adding that priority will be given to restaurants, dhabas, hotels, industrial canteens, food and dairy units, subsidized canteens or outlets run by state governments or local bodies, community kitchens and 5 kg free LPG trade for migrant workers.
