India Caught Short as Domestic and Commercial LPG Prices Rally

The cost of commercial liquefied petroleum gas (LPG) distributed in 19kg cylinders across India has hit record highs, while domestic LPG across India has rallied to the highest level in more than three years, data from Indian Public Service Undertaking (PSU) firm Indian Oil Corp. (IOC) showed, as the conflict in the Middle East continues to curb availability.

On June 1, the price of commercial LPG fuel in Delhi, Kolkata, Mumbai and Chennai jumped to 3,113.50 Indian Rupees (Rs) ($32.50), 3,255.50 Rs ($34), 3,067.50 Rs ($32) and 3,283 Rs ($34.30), respectively. By comparison, LPG prices on Feb. 1 stood at 1,740.50 Rs for Delhi, 1,844.50 Rs for Kolkata, 1,692.00 Rs for Mumbai and 1,899.50 Rs for Chennai.

Typically, the 19kg commercial LPG prices rise on the first day of each month.

The U.S. and Israel began military strikes on Iran on Feb. 28, that eventually resulted in the de facto closure of the Strait of Hormuz, a narrow transit point vital for global shipping.

Indian shipbrokers cited the continued shortage of LPG in the country from the conflict in the Middle East.

On the domestic market, non-subsidized LPG prices, the fuel commonly used by household users and distributed in 14.2kg cylinders, excluding beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) subsidy scheme, have risen for the second time this year so far. The fuel price moved just once in 2025.

The latest non-subsided price for a 14.2-kg LPG cylinder in Delhi, Kolkata, Mumbai and Chenni was marked at 942 Indian Rupees ($9.84), 968 Rs ($10.11), 941.50 Rs ($9.84) and 957.50 Rs ($10) on June 7, respectively, data from IOC showed.

Levels were hiked 7% on March 7 as the country battled for fuel availability with the start of conflict in the Middle East. Domestic LPG prices are now at their highest level since March 2023, according to the data.

Imports Suffer as India Turns to the US for Help

In the immediate aftermath of the start of conflict, India took delivery of 1.08 million metric tons of LPG in March, compared to 2.04 million mt in February, data from shipping analytics firm Vortexa showed. India took delivery of 1 million mt in May, the majority of which was sourced from the U.S., although deliveries from the Middle East did improve.
Product sourcing origins have widened in the second quarter, with volumes flowing into the country from West Africa, Algeria, Argentina, Australia and Russia, on top of the usual suspects in the Middle East and the U.S.

Before the outbreak of war, the Middle East was the source of origin for 92% of India’s imports in 2025. In the second quarter this year, the Middle East is expected to account for 29% of total deliveries, with the U.S. rising to 52.7% from 6% in 2025.

With deliveries slowing in the second quarter, waiting times for Very Large Gas Carriers (VLGCs) discharging at Indian ports has fallen.

In the West, the number of days for VLGCs spent waiting to discharge has fallen from 1.8 days in February to a level of 1.6 days over April-June, whilst days waiting at ports in the East have fallen from 2.4 days in March to an average over 1.5 days April through June, data from shipbroker Reshamwala showed.

Indian storage capacity at ports in the West is estimated to total just short of 513,500 mt with the corresponding volume in the East Coast approximately 298,500 mt. Both are considered low compared to the absolute volume of annual imports into India.