For millions of Indian households, the price of an LPG gas cylinder is a significant monthly expense. Recent years have seen fluctuations, with many hoping for a consistent LPG gas cylinder price decrease. There is good news on the horizon. India has secured a landmark deal with the United States for liquefied petroleum gas (LPG) imports starting in 2026.
This strategic move could lead to more stable and potentially lower LPG gas cylinder prices in the coming years.
This historic agreement marks a crucial step towards diversifying India’s energy sources. It aims to bolster energy security and provide relief to consumers. The deal could significantly influence the LPG gas cylinder price trend. Read on to learn how.
India’s Landmark LPG Import Deal with the United States
India has finalised its first structured, long-term contract to import LPG from the United States. This is a significant development for the nation’s energy landscape. Indian state-run refineries, including Indian Oil, Bharat Petroleum, and Hindustan Petroleum, are part of this agreement.
The deal commits India to importing 2.2 million tonnes per annum (MTPA) of LPG. These supplies will come from the US Gulf Coast throughout the contract year 2026. This volume represents nearly 10% of India’s total annual LPG imports.
Suggested Read: LPG Full Form
Diversifying Energy Sources for Greater Stability
Traditionally, India has relied heavily on West Asian countries for its LPG needs. Suppliers like the UAE, Qatar, Saudi Arabia, and Kuwait have been primary sources. This new agreement with the US aims to reduce this dependence. It will create a more diversified and resilient supply chain.
Union Petroleum Minister Hardeep Singh Puri highlighted the importance of this deal. He stated it is a step towards ensuring “secure, affordable, and reliable LPG supplies” for Indian households. The pricing under this contract will be benchmarked to Mont Belvieu. This is a key US pricing hub for LPG. This benchmarking could offer a more competitive pricing mechanism.
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Potential Impact on LPG Gas Cylinder Prices
The diversification of LPG sources is a positive sign for consumers. Increased supply from a new, stable partner like the US could lead to a more consistent LPG gas cylinder price. It may also mitigate the impact of geopolitical instabilities in traditional supply regions. This could help prevent a sharp LPG gas cylinder price hike.
While it is difficult to predict the exact LPG gas cylinder price in 2026, this deal lays a strong foundation. It suggests a potential for a LPG gas cylinder price decrease or at least greater stability. The government’s strategy focuses on long-term affordability and supply consistency.
This aligns with the goal of making LPG accessible to all.
Suggested Read: LPG Cylinder Price
Understanding Current LPG Price Trends
Currently, the domestic LPG gas cylinder price remains relatively stable in major Indian cities. For instance, a 14.2 kg domestic LPG cylinder costs around ₹853.00 in New Delhi. This price has been steady since April or May 2025.
In Mumbai, the LPG gas cylinder price is about ₹852.50. This has also been consistent since April 2025. Bangalore sees a price of ₹855.50, stable since June 2025.
Commercial LPG prices have shown more fluctuations. They have experienced some recent reductions. These variations highlight the dynamic nature of the market.
Historical Price of LPG in India:
To understand the context of today’s prices, it is useful to examine the historical trend of LPG cylinder costs over the past five years. The market has seen significant volatility, influenced by global energy prices, geopolitical events, and domestic policy changes.
The following table illustrates the approximate price of a 14.2 kg non-subsidised domestic LPG cylinder in New Delhi.
| Year | Approximate Price (New Delhi) | Key Trend |
| 2025 | ~ ₹853 | Prices stabilised after a government-announced price cut in late 2024. |
| 2024 | ~ ₹903 – ₹1,103 | Started high and saw a significant ₹100 price cut by the government. |
| 2023 | ~ ₹1,103 | Prices peaked, remaining consistently high for most of the year. |
| 2022 | ~ ₹1,053 | A year marked by sharp and frequent price hikes due to global factors. |
| 2021 | ~ ₹850 | A period of steady increases, with prices rising by over ₹150 through the year. |
Note: Prices are approximate annual averages for a 14.2 kg non-subsidised cylinder and can vary based on the specific month and policy changes.
Commercial LPG prices have shown more fluctuations. They have experienced some recent reductions. These variations highlight the dynamic nature of the market.
Also Read: Check LPG Gas Subsidy
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Factors Influencing LPG Prices in India
Several factors determine the lpg gas cylinder price in India. These include:
- Global Crude Oil Prices: The international cost of crude oil is a primary driver of LPG prices.
- Rupee-Dollar Exchange Rate: As LPG is imported, the strength of the Rupee against the US Dollar impacts the final cost.
- Import and Logistics Costs: Custom duties, insurance, and ocean freight charges add to the landed cost of LPG.
- Domestic Charges: Bottling, marketing expenses, and dealer commissions contribute to the retail price.
- Government Policies: Government interventions, including taxes and subsidies, play a crucial role in the final price paid by consumers.
The Indian government actively manages LPG prices through subsidies, particularly for households under the Pradhan Mantri Ujjwala Yojana (PMUY). In March 2024, a significant ₹100 per cylinder price cut was announced, and the PMUY subsidy was extended until March 2025. Ujjwala beneficiaries often pay around ₹500-550 per cylinder, with the government absorbing the remaining cost, demonstrating a commitment to affordable cooking fuel.
Suggested Read: PM Ujwala Yojana
Looking Ahead to 2026 and Beyond
The new US deal is a proactive measure to ensure a stable supply of LPG. It is part of a broader strategy to secure energy for Indian households. This increased supply security, combined with diversification, could lead to a more predictable lpg gas cylinder price. It offers a promising outlook for consumers.
The global LPG market is expected to grow. The IMARC Group projects the market to reach USD 197.34 billion by 2033. This growth is driven by rising energy demand and the adoption of cleaner fuels. India, being one of the fastest-growing LPG markets, stands to benefit from stable international partnerships.
While an immediate, drastic lpg gas cylinder price decrease cannot be guaranteed, the long-term implications are positive. The deal strengthens India’s negotiating position in the global market. It provides a buffer against potential price shocks. This strategic move is a welcome development for millions of Indian families.
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