Commercial LPG Cylinder Prices Hiked By Rs 993 Amid Iran War, Domestic Rates Unchanged

New Delhi: Amidst the heightened global instability fuelled by the US-Iran war, the government has implemented a steep price increase of Rs 993 for 19 kg commercial LPG cylinders from today, with a cylinder now costing Rs 3,071.50 in Delhi, Indian Oil Corporation (IOC) said.

In contrast, the domestic gas rates remain unaffected, offering a shield for household budgets against the rising regional tensions.

"Prices of 19 KG Commercial cylinder has been increased by Rs 993 from today. A 19 Kg cylinder will cost Rs 3071.50 in Delhi from today. No change in domestic cylinder prices," news agency ANI quoted sources as saying.

Three significant hike

Since the outbreak of the Iran conflict on February 28, the price of 19-kg commercial LPG cylinders has undergone three significant increases. 

Following a Rs 144 jump in March and a nearly Rs 200 hike on April 1, this latest adjustment completes a "triple blow" to the service industry. Because restaurants and small eateries depend heavily on this fuel for daily operations, the rising costs are expected to be passed directly to customers through higher menu prices.

Fuel rates

The retail prices of petrol, diesel have remained unchanged and separately, in a big relief for the aviation sector, the government has also made no change in aviation turbine fuel (ATF) prices for domestic airlines (scheduled operations).

What govt guidelines say

In a simultaneous effort to curb misuse and streamline subsidy distribution, the government is identifying households that hold both LPG and piped natural gas (PNG) connections. This crackdown enforces a standing prohibition on dual ownership, ensuring that energy resources are targeted more effectively toward those in need.

Last month, the government implemented a new policy prohibiting households with piped natural gas (PNG) from holding or applying for subsidized domestic LPG connections.

Why the shortage?

Prior to the escalation of hostilities between the US-Israel and Iran on February 28, India was heavily reliant on West Asia, sourcing over 50% of its crude, 30% of its gas, and nearly 90% of its LPG from nations like Saudi Arabia and the UAE.

The subsequent blockade of the Strait of Hormuz- a vital energy artery- has severely disrupted these supplies. While India has mitigated the crude oil shortage by pivoting to Russian imports, industrial gas supplies have been slashed, and LPG availability for the commercial sector, including hotels and restaurants, has been significantly tightened.