India's LPG production: On March 7, the government had decided to increase the price of domestic LPG cylinder by Rs 60 per cylinder, after which its price has increased to around Rs 913 in New Delhi.
Escalating tensions in the Middle East have increased uncertainty in the global energy market. Threats from Iran are feared to impact oil and gas supplies through the vital Strait of Hormuz. The impact is also being felt in India, where the supply of commercial LPG cylinders has dwindled. In Mumbai, approximately 20 percent of hotels have been forced to close due to this shortage.
How big a buyer of LPG is India?
How big a consumer of LPG is India, and what steps have been taken to address the current crisis? India has invoked the Essential Commodities Act to maintain the supply of LPG, which consumes over 30 million tons. The country consumes approximately 31.2 million tons (approximately 31.3 million tonnes) of LPG each year. Of this, approximately 60 percent is imported, while approximately 40 percent, or about 12.4 million tons, is produced domestically.
14-kilogram cylinders account for approximately 87 percent of domestic consumption, while 19-kilogram cylinders account for approximately 13 percent of commercial consumption.
Which countries does LPG come from?
Most of India's LPG supply comes from West Asia. This region accounts for approximately 80 percent of total imports. Of this, approximately 26 percent comes from the United Arab Emirates, 22 percent from Qatar, and 22 percent from Saudi Arabia, while the remaining 33 percent is imported from other countries. How many consumers are there in India? According to March 2026 data, there are approximately 330.8 million active LPG consumers in India.
Currently, approximately 105 million people are beneficiaries of the Pradhan Mantri Ujjwala Yojana. Under this scheme, they receive a subsidy of ₹300 per cylinder, after which they have to pay approximately ₹613 per cylinder.
