Households will now pay Rs 942 for a refill of a 14.2-kg cylinder in Delhi, with prices varying marginally across cities. An Ujjwala beneficiary will pay ?642 for the first four refills in a year, while the fifth refill onward will cost ?942.
This is the second increase in domestic LPG prices since the Iran war broke out on February 28. The first price hike, of Rs 60 per cylinder, was announced on March 7.
India imports 60% of its LPG requirement, with 90% of supplies sourced from West Asia. Despite the near closure of the Strait of Hormuz, India has managed to move some LPG cargoes out of the Persian Gulf over the past three months without paying any toll (to Iranian authorities), the ministry said.
The landed cost of imported LPG in India is linked to the Saudi Contract Price (CP), set by Saudi Aramco at the beginning of each month. The Saudi CP for LPG stood at about $543 per tonne in February, before the disruption, and has risen to $790 per tonne in June.
At the current exchange rate, the Saudi CP translates to about Rs 75.4 per kg, or ?1,071 for a 14.2-kg refill. State-run oil companies add shipping, insurance, bottling, inland transport, distribution costs and marketing margins before fixing the retail price.
“Following the June contract price, the cost of supplying a 14.2 kg cylinder, were it priced on an import-linked basis, has risen to over ?1,600,” the ministry said in the statement. The current retail price is ?942 per cylinder.Commercial LPG refills, sold in 19-kg cylinders, have seen multiple price increases and largely track international rates. The 5-kg cylinder also follows international prices and carries no subsidy. “Commercial gas carries a higher rate of tax and larger margins, so it sits above the household’s cost-reflective level,” the ministry said. By supplying LPG below market rates, state-run oil companies incurred an estimated under-recovery of about Rs 60,000 crore in 2025-26 and Rs 41,338 crore in 2024-25, the ministry added.