LPG sales in India experienced a significant 19% year-on-year decline in May 2026, even as prices continued their aggressive upward trajectory. According to latest government data reported by The Times of India, this decline occurred despite the ₹23 to ₹53.5 increase in commercial 19 kg cylinders across Delhi and Kolkata implemented from June 1, 2026. The price increases, which brought Delhi's rates to ₹3,113.5 and Kolkata's to ₹3,255.50, represent the fifth hike since March 1, 2026. This contrasts sharply with petrol and diesel consumption, which grew 2.8% and 1% respectively during the same period, highlighting the impact of rising LPG costs on consumer demand.
The price revision comes amid disruptions in global energy markets linked to the ongoing Iran conflict, after recent increases in petrol and diesel prices. According to NDTV Profit, the central government has recently instructed Oil Manufacturing Companies to develop strategic reserve plans. "The Oil Marketing Companies have been asked to work out a plan so that the reserve for LPG should be a minimum of 30 days with them, and they are working on it," said Sujata Sharma, Joint Secretary of the Ministry of Petroleum during a press briefing on Friday. She mentioned that similar strategic reserve plans for crude oil are also underway. Speaking on LPG backlog concerns, Sharma noted that "it has now come down to a range of 4 and a half days," with oil marketing companies regularly in touch with state governments for district-wise sales information.
The latest revision comes amid heightened government monitoring of fuel and LPG supplies following geopolitical tensions in West Asia. According to an inter-ministerial briefing on May 29, authorities have intensified enforcement measures to curb hoarding and black marketing of petroleum products. Over the last four days, more than 6,500 raids related to LPG were conducted across the country, resulting in the seizure of over 380 cylinders, registration of five FIRs and arrest of two persons. Inspections were also carried out at more than 800 LPG distributorships, and penalties were imposed on 45 distributors. The government confirmed that LPG supplies continue to be affected by the prevailing geopolitical situation, but supplies to domestic consumers have been prioritised.
Despite government efforts to strengthen LPG supplies, Oil Marketing Companies continue to face significant financial challenges. As per The Times of India, Oil Marketing Companies (OMCs) continue to face under-recoveries of nearly ₹700 on every domestic LPG cylinder despite various measures taken by the government. Addressing an inter-ministerial briefing, Sujata Sharma, Joint Secretary of the Ministry of Petroleum and Natural Gas, confirmed that "As far as the under recovery on LPG domestic cooking cylinder is concerned, it is still in the range of almost ₹700." The ministry has ramped up domestic LPG production significantly, with around 54 TMT of LPG evacuated from different sources within the country as of the latest data. LPG demand has moderated due to reduced consumption from commercial and industrial users, changes in booking cycles, and adoption of delivery authentication systems.
LPG distribution operations have shown remarkable improvement in efficiency and digital adoption. According to The Times of India, no distributor in the country has reported running out of stock, with around 99% of bookings now online and 96% of deliveries through delivery authentication code (DAC). The ministry reported that over the last three days, 1.43 crore LPG cylinders were delivered against bookings of 1.5 crore cylinders. On the piped natural gas front, significant progress has been made in network expansion since March 2026, with around 8.82 lakh PNG connections gasified while infrastructure has been created for another 2.98 lakh connections, taking the total to 11.80 lakh connections. Additionally, more than 80,400 PNG consumers had surrendered their LPG connections as of June 3.
According to Zee News analysis, commercial LPG prices have witnessed an aggressive and consistent rise from the start of 2026. The chronological trend for 19 kg cylinder during the first half of 2026 shows: January ₹1,691.50 (base rate), February ₹1,740.50 (+₹49.00), March ₹1,855.50 (+₹115.00), April ₹2,051.00 (+₹195.50), May ₹3,044.00 (+₹993.00), and June 1 ₹3,113.50 (+₹42.00). Following six consecutive months of hikes, there is almost double the price of the commercial cylinder from January onwards. Indian Oil had previously increased prices by ₹218 to ₹195.5 for April 2026, followed by a ₹114.5 hike on March 7, 2026. The impact of rising LPG costs is being felt across major cities, with Mumbai at ₹3,024.50, Chennai at ₹3,232, Hyderabad at ₹3,294, and Patna at ₹3,322 for 19 kg commercial cylinders.
