Domestic and commercial LPG cylinder prices in India saw minor changes on May 9 but remained broadly stable on Wednesday. Fuel prices in the country are determined by state-owned oil marketing companies such as Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum, which revise rates for commercial LPG and ATF (Aviation Turbine Fuel) on a monthly basis.
The commercial price of LPG has been increased ₹993 in the last periodic adjustment. The disruption of fuel supplies along the Strait of Hormuz, a key shipping route that controls 20% of global oil and natural gas trade flows, has resulted in an energy crisis. As a result, global fuel prices have witnessed upward pressure in the past two months since the Gulf waterway blockade came into force.
The blockade is the result of a war between Iran and the US and Israel that began on February 28. Since then, LPG cooking gas prices have been revised three times – the price has increased by ₹144 in March and later ₹203 in April. Domestic LPG cylinder prices were also revised in March but remained unchanged thereafter ₹60 price increase. The government continues to cushion consumers from rising global oil prices.
Emerging oil companies ₹30,000 crore loss per month
The Petroleum Ministry said on Friday that oil companies are facing an average monthly under-recovery of around ₹30,000 crore to sell petrol, diesel and LPG amid rising global energy prices.
During an inter-ministerial briefing, Sujata Sharma called the situation in the Strait of Hormuz “the biggest disruption ever”. Highlighting the Centre’s efforts to control inflation, she said, “Our oil marketing companies are buying expensive crude oil, gas and LPG from the market. But to protect our consumers, they are selling at low prices, ANI reported.”
Noting the exemption from excise duty, she added: “Now it has an impact on our oil marketing companies as well. And to reduce this impact, the Indian government has reduced the excise duty. And the cost of this reduction is ₹14,000 crore per month.” Despite the global supply disruption, the government is of the view that LPG supply is adequate and there is no shortage or drying up at any distributor.
LPG increases the cost of thali
According to the latest Roti Rice Rate report by Crisil Intelligence, the cost of both vegetarian and non-vegetarian domestic thalis rose by 2 percent year-on-year in April 2026 due to increased LPG price, higher prices of tomatoes and vegetable oil. Household cooking costs have been compounded by global supply outages, which have increased vegetable oil and LPG cylinder prices by 7 percent year-on-year.
A Reuters poll suggested that India’s year-on-year consumer inflation was likely to move closer to the central bank’s medium-term target of 4% in April due to higher fuel prices. Although inflation has remained below the Reserve Bank of India’s (RBI) target for more than a year, oil prices are threatening to reverse this favorable trend in the world’s third-largest oil importer. The price of oil remains elevated by about 40% above pre-war levels.
