Domestic LPG Price Raised by Rs 29 per Cylinder Amid Higher Global Energy Costs

The price of a domestic cooking gas (LPG) cylinder in India has been increased by Rs 29. LPG, or Liquefied Petroleum Gas, is the cooking fuel supplied in household cylinders. This is the second rise in three months. After this revision, a standard cylinder costs around Rs 942 in Delhi. An earlier increase of Rs 60 was made on 7 March 2026, which means the total rise over three months adds up to Rs 89 per cylinder.

The government has explained that the higher price is linked to conditions in the global energy market rather than to local factors. International fuel supplies were disrupted after a conflict broke out in West Asia, and LPG is now being sourced from a small number of countries located far from India. Because the shipping journey takes around 40 to 45 days, the costs of transport and insurance have gone up, in addition to a higher base price for the fuel itself. Officials said the country continues to face high freight and supply costs.

India's LPG import bill is tied to the Saudi Contract Price (CP), which is the global benchmark used to set the cost of this fuel. This benchmark has climbed about 46 per cent since February 2026 as supplies tightened from the Gulf region, partly due to disruptions near the Strait of Hormuz, a narrow sea passage through which a large share of the world's oil and gas trade moves. As a result, the full cost of supplying one domestic cylinder is now estimated to be more than Rs 1,600.

The government has stated that, despite the increase, Indian households still pay among the lowest cooking gas prices in the world. State-run oil marketing companies were estimated to be losing about Rs 703 on every LPG cylinder sold before the latest revision, because the selling price stays well below the actual supply cost. The aim, officials said, is to keep the burden on the common consumer low while expanding procurement from new sources.

For exam preparation, this development connects pricing of essential fuels to global supply chains, the Saudi Contract Price benchmark, and the strategic importance of the Strait of Hormuz and the Gulf region. Aspirants should remember the exact figures (Rs 29 latest hike, Rs 60 on 7 March 2026, total Rs 89 in three months, around Rs 1,600 supply cost, 46 per cent benchmark rise), the role of state-owned oil marketing companies in absorbing under-recoveries, and how import-dependence on energy affects domestic prices and the economy.