How LPG Cylinder Prices Work in India

Why your LPG price can change at the start of a month, the difference between domestic and commercial cylinders, and how the subsidy reaches your bank account.

Cooking gas is one of the few household costs that many families pay for in one large amount. Knowing how it is priced helps you check a bill and spot a problem early.

Who sets the price

Public sector oil companies such as Indian Oil (Indane), Bharat Petroleum (Bharatgas) and Hindustan Petroleum (HP Gas) set LPG prices. They review prices around the start of each month, though the domestic price may stay unchanged for long stretches. International LPG prices and the rupee-dollar rate feed into this, and the government can also step in on domestic cylinder prices.

Domestic and commercial cylinders

The most common sizes are:

Type Weight Used by
Domestic 14.2 kg Households
Small domestic 5 kg Small households, migrants
Commercial 19 kg Restaurants, shops

Commercial cylinders cost more and do not receive domestic subsidies. Using a domestic cylinder for commercial purposes is against the rules.

Why the price differs between cities

Prices vary between cities and states mainly because of transport distance from the bottling plant and differences in state taxes and charges. A household in a remote area may pay more than one in a nearby metro.

How the subsidy works

Where a subsidy applies, the customer generally pays the full listed price to the distributor, and the subsidy is sent to the linked bank account under the PAHAL direct benefit transfer scheme. If you expect a subsidy and it is not arriving, check that your bank account and Aadhaar are linked to your LPG connection, and speak to your distributor. Beneficiaries of PM Ujjwala Yojana have their own terms.

Checking your delivery

  • Check the seal before you accept the cylinder.
  • Check the weight if you are unsure. You may ask the delivery person to weigh it.
  • Pay the bill amount. Ask for a receipt. Delivery charges beyond a set distance should be explained by your distributor.
  • Check the test due date printed on the cylinder collar. Do not accept a cylinder that is past it.

The latest listed rates are on our LPG and CNG price page.