LPG Gas Price

LPG (Liquefied Petroleum Gas) is a very popular fuel in India, serving as a source of energy for households and commercial establishments in their daily chores of cooking and other operations. Whether you need fuel for your home kitchen or your restaurant, LPG is the most effective solution. The prices of LPG cylinders change from time to time. Such price revisions are affected by the energy price fluctuations worldwide, the decisions of the government, and the cost of transportation. Since a considerable quantity of LPG is imported, the global market situation affects the prices in India directly.

Following the prices of LPG in major cities will help you to have a better understanding of price fluctuations and will help in comparing the prices and planning your monthly budget.

4 August 2026

Fuel insights

FAQs for LPG Prices in India

The price of a 14.2 kg domestic LPG cylinder in India is revised regularly and may vary slightly across cities. Currently, domestic and commercial LPG cylinder prices vary depending on the latest revision and location.

There are three major factors for calculating the cost of LPG cylinders. These include international fuel prices, the cost of importing gas, the rate of exchange of the rupee to dollar, and taxes imposed by the government. Oil companies calculate and revise LPG prices at regular intervals.

The cost difference is because of the cost of transportation, distance from supply source such as refineries, and the distribution cost of each city. The cities that are far from supply centers have higher LPG prices.

These prices are usually revised from time to time, typically once a month, based on global fuel price variations, currency movement, and policy considerations.

They include global prices of LPG, crude oil rates, rupee-dollar foreign exchange rates, transportation costs, taxes levied by the government, and demand and supply dynamics.

The former is designed for households and is relatively cheap due to less taxation and government subsidies, while the latter is used by commercial entities such as hotels and restaurants and is relatively expensive since it is priced at market levels.

One can obtain details about the current prices from the website of the LPG supplier (Indane, Bharat Gas, HP Gas, and so on), the mobile app of the supplier, or the local distributor.

It is mainly because of the movements in global energy markets, crude oil rates, foreign exchange rates, and policy considerations.

Subsidies may be provided to eligible families through government programmes such as PMUY (Pradhan Mantri Ujjwala Yojana).

The oil marketing companies set the LPG rate based on international prices, cost of imports, exchange rates and government taxes.

PNG (piped gas) will be more cost-effective in the long run since you pay for what you consume. LPG cylinders might be initially economical, but they require lump sum payment and pricing variations.

Both of these options can be safe when used properly. Nonetheless, piped gas is deemed to be safer because it does not require storage and has an additional safety system.

What is LPG & LPG Price?

LPG or Liquefied Petroleum Gas is an effective and environmentally friendly fuel widely used in cooking, heating, and some industrial processes. This type of gas consists of a mixture of propane and butane gases, compressed and liquefied. LPG price is the amount paid for a domestic or commercial gas cylinder.

LPG Gas Cylinder Prices in India

In India, the prices of LPG gas cylinders are periodically reviewed by oil marketing companies. The reasons for revising the prices of these gas cylinders include international fuel prices, import cost, foreign currency exchange rate, and government policy.

Being heavily dependent on the international market in terms of meeting the country's LPG demand, any fluctuation in the global market would directly impact the prices in the local market irrespective of domestic demand.

Why LPG Prices Differ Across Indian Cities

LPG prices vary according to the city of supply. There are many reasons why LPG prices differ in various cities. Logistically and geographically, there are many cost elements contributing to the final price of an LPG cylinder.

Import parity price (reflecting international LPG prices)
Transport and freight charges
Bottling charges
Dealer commission
GST applicable

These costs make up the total cost of LPG cylinders.

Domestic vs Commercial LPG Gas Cylinders: What's the Difference?

The LPG cylinders which are used domestically are mainly intended for home cooking purposes and are comparatively cheaper in nature owing to less taxes and government aids.

Contrastingly, the commercial LPG cylinders are mainly used in hotels, restaurants and industries etc. and these are priced at market rate and attract high GST rate and hence are quite costly in comparison to domestic cylinders.

Factors That Influence LPG Prices

The LPG prices in India are affected by various factors, both international as well as local.

Benchmark LPG prices internationally
Crude oil prices
Exchange rate Rupee v/s US Dollar
Shipping & transportation charges
Government policy and taxes
Demand Supply scenario

Any slight change in any of these factors results in fluctuation in LPG prices.

LPG Price Trends and Market Updates

Observing LPG price trends helps you understand the market behavior. The LPG prices either increase or decrease on the basis of global energy trends, geopolitical scenarios and policies within the country.

For households, this is useful in budget planning and similarly industries find it useful in controlling operational costs.

Monitoring LPG Prices Regularly

It is more beneficial to watch out for LPG prices than it may seem.

Helps in better budgeting each month
Keeps you informed about the fluctuations in prices
Allows you to compare prices in various cities
Helps in understanding the market trends
Helps businesses plan their fuel budget

Being aware of the information allows you to make wiser choices.

Key LPG Pricing Terms Explained

Import Parity Price (IPP)

IPP is a term that is used to calculate LPG prices in India depending on the prices on international markets. This involves the cost of import of the LPG to the country.

GST on LPG

There is a 5% GST on domestic LPG cylinders which makes them cheaper for consumers. In case of commercial LPG cylinders there is a 18% GST on the same.

Dealer Commission

It is the commission that goes to the dealers who sell LPG.

Bottling and Transportation Costs

These involve costs of bottling LPG cylinders and then shipping them to various places.

Which is safer for households: LPG cylinder or piped gas connection?

Both LPG cylinders and PNG connections are regarded to be safe, but there are slight differences between the two in terms of ease of use and safety.

LPG cylinders are safe provided they are used properly, kept in ventilated places, and frequently checked for leaks. But owing to the fact that LPG cylinders make use of stored gas in pressurized conditions, it becomes risky if not used in the right manner.

In contrast, PNG connections supply gas directly through the pipelines and eliminate the necessity of gas storage. PNG connections are regarded to be much safer since they minimize the risks of leakage from cylinders, along with having automatic shut-off systems built into them.

Therefore, PNG is the better choice when compared to LPG.

LPG Cylinder vs PNG/LPG Pipeline: What are the key differences?

There are some differences between the use of LPG cylinders and PNG pipeline connections:

Mode of Supply

In the case of LPG, the gas is supplied in cylinders, whereas PNG is supplied by pipelines into the houses.

Convenience

PNG provides an uninterrupted supply without the hassle of booking and replacing cylinders. In the case of LPG, booking is required.

Safety

PNG is relatively safer as there is less pressure involved and it has a continuous flow system. LPG is also quite safe.

Costing

LPG includes the cost of buying cylinders and price fluctuations; however, PNG is charged per use like other utilities such as electricity and water.

Availability

LPG is available all over India, even in remote areas, whereas PNG is available only in cities.

Setup

PNG requires initial installation setup, while LPG can be utilized right away with the help of simple equipment.

Both systems have their own benefits, and the decision rests upon availability and convenience.