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Why LPG Prices Are Rising in 2026

26 March 20263 min readBy UPSeva Team

Current LPG Prices (March 2026)

CityNon-SubsidisedSubsidised
Delhi₹853₹703
Mumbai₹859₹709
Kolkata₹879₹729
Chennai₹865₹715
Lucknow₹871₹721

*Prices as of March 25, 2026 - may vary by distributor

Why Prices Are Rising

1. International LPG Rates

Global LPG prices increased 20-25% in Q1 2026 due to:

  • Iran conflict affecting supply routes
  • Increased demand from Asia
  • Shipping costs up 30%

2. Import Dependency

India imports 60% of its LPG requirements:

SourceDependency
Middle East45%
USA25%
Domestic40%

3. Rupee Depreciation

₹1 weaker against $ = ₹5-8 increase in LPG

4. Taxes & Levies

Tax ComponentAmount
Central Excise₹50-80
State VAT₹30-60
Dealer Commission₹40-50

Impact on Different Households

Non-Ujjwala Users

  • Pay full market price
  • No subsidy protection
  • ₹50-100 increase per cylinder

PM Ujjwala Beneficiaries

  • Subsidy of ₹150-200/cylinder
  • May still see ₹30-50 increase
  • Check DBT status regularly

BPL Families

  • Additional state subsidies
  • Priority in distribution
  • Contact local dealer

State-wise Subsidy Comparison

StateAdditional SubsidyTotal Benefit
UP₹100₹300
Bihar₹80₹280
Delhi₹0₹200
Maharashtra₹50₹250
Rajasthan₹70₹270

How to Reduce LPG Bills

1. Conserve Gas

  • Use pressure cooker (saves 40%)
  • Cover vessels while cooking
  • Cook in bulk, reheat later

2. Alternatives

OptionSetup CostMonthly Savings
Induction stove₹2,000-5,000₹300-500
PNG connection₹5,000-10,000₹500-800
Solar cooker₹3,000-8,000₹200-400

3. Government Schemes

  • PM Ujjwala: Free connection for BPL
  • PAHAL: Subsidy direct to account
  • State schemes: Additional benefits

Price Forecast

PeriodExpected ChangeReason
Apr 2026+₹20-30Supply adjustment
May-Jun 2026StableReserves used
Jul-Sep 2026-₹10-20Situation normalizes

What Government is Doing

  1. Subsidy review: May increase DBT amount
  2. Import diversification: More USA supplies
  3. Strategic reserves: LPG buffer stocks
  4. Price monitoring: Daily tracking

Check Your Subsidy Status

  1. Visit mylpg.in
  2. SMS "LPGID" to your distributor
  3. Call 1906 toll-free

Related Links

Get price alerts on Telegram: @upseva_app

Source: Official UP Government Notifications

Last updated: 26 March 2026

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