LPG Shortage: The ongoing Iran-US-Israel conflict is beginning to disrupt LPG supplies in India, triggering shortages that are now affecting households as well as businesses such as restaurants. With imports
facing disruptions and the conflict showing no signs of easing, the availability of LPG cylinders has tightened in several areas, according to traders.
A domestic LPG cylinder currently costs around Rs 900, while a commercial cylinder is priced at about Rs 1,890. However, the supply crunch has led to the emergence of black-market sales, where cylinders are reportedly being sold for as much as Rs 5,000, several times higher than the official price.
Restaurants and small food businesses are among the worst affected as they rely heavily on commercial LPG cylinders for daily operations.
Traders say the shortage has intensified due to disruptions in global energy supply chains linked to the escalating West Asia conflict. Market participants say prolonged disruptions in imports could worsen availability in the coming weeks.
LPG Cylinder Prices In Metro Cities
After the latest revision, the price of a 14.2 kg domestic LPG cylinder in India’s four major metro cities is as follows:
- Delhi: Rs 913.00
- Mumbai: Rs 912.50
- Kolkata: Rs 939.00
- Chennai: Rs 928.50
The prices reflect a Rs 60 increase compared with the previous rates.
Domestic LPG Prices In Major Cities
Prices vary across cities due to transportation costs and state-level taxes.
- New Delhi: Rs 913.00
- Mumbai: Rs 912.50
- Bengaluru: Rs 915.50
- Jaipur: Rs 916.50
- Noida: Rs 910.50
- Gurgaon: Rs 921.50
- Hyderabad: Rs 965.00
- Lucknow: Rs 950.50
- Patna: Rs 1,002.50
- Thiruvananthapuram: Rs 922.00
- Bhubaneswar: Rs 939.00
Commercial LPG Cylinder Prices
Businesses such as restaurants and hotels that use 19 kg commercial cylinders have also seen a sharp increase in prices.
- New Delhi: Rs 1,884.50
- Mumbai: Rs 1,836.00
- Kolkata: Rs 1,988.50
- Chennai: Rs 2,043.50
- Hyderabad: Rs 2,105.50
- Patna: Rs 2,133.50
The commercial cylinder price has increased by Rs 144 across the country.
However, restaurants are reporting huge shortage of cylinders in the market.
Highest And Lowest LPG Prices Across States
Among major states, Bihar currently has one of the highest domestic LPG prices at Rs 1,002.50, while several northeastern states are even costlier due to transportation expenses.
On the other hand, Maharashtra (Rs 912.50) and Delhi (Rs 913.00) remain among the relatively cheaper markets for LPG cylinders.
Why LPG Shortage Is Being Reported
Several regions have reported delays in LPG cylinder delivery as distributors struggle to meet demand. Reports suggest that the supply tightness is largely due to a combination of factors.
First, domestic LPG consumption has surged in recent months as more households rely on LPG for cooking. India is one of the world’s largest LPG consumers and demand tends to rise sharply during certain seasons.
Second, global energy markets remain volatile, particularly after the escalation of tensions in the Middle East that pushed crude oil and energy prices higher. Since India imports a large portion of its LPG requirements, global price movements directly affect supply costs and availability.
US-Israel strikes on Iran (February 28) triggered Iranian retaliation that hit Qatar’s Ras Laffan LNG facility, the world’s largest at 82 mmtpa, nearly 25% of global LNG supply. The Strait of Hormuz is effectively blocked for energy shipments. Asian spot LNG prices have surged from about $10.5/mmbtu to over $25/mmbtu for April 26 delivery. A 55-65% of India’s LNG imports transit through Hormuz; Qatar alone is 35-40% of India’s LNG imports and about 20% of domestic gas demand.
Third, logistical bottlenecks and transportation constraints have slowed distribution in some regions, leading to temporary shortages at the distributor level.
Government officials have indicated that the shortage is temporary and supplies are being stabilised through increased imports and improved distribution.
