The State-controlled oil marketing companies (OMCs) are facing an under recovery of around ₹650 per 14.2 kg cylinder of liquefied petroleum gas (LPG) for domestic consumers.
Sujata Sharma, Joint Secretary in the Ministry of Petroleum & Natural Gas (MoPNG), said “There is an under recovery of ₹650 per cylinder on domestic LPG.”
The current demand for the critical cooking fuel, which is used by more than 33 crore households, is around 72,000 tonnes per day (TPD), lower than the normal demand of around 80,000 TPD, as LPG consumption generally declines during summers.
LPG supply continues to be affected by the prevailing geopolitical situation. Supply of LPG to domestic households has been prioritised. No dry-outs have been reported at LPG distributorships. Online LPG cylinder bookings increased to about 99 per cent on an industry basis on Sunday,” she added.
There is also a positive development on migrating consumers from LPG to domestic piped natural gas (D-PNG). Since March 2026, about 8.56 lakh PNG connections have been gasified and infrastructure has been created for additional 2.96 lakh connections, taking the total to 11.52 lakh connections. Besides, around 8.78 lakh customers have been registered for new connections.
As of May 2026, more than 77,800 PNG consumers have surrendered their LPG connections.
Meanwhile, the government on Monday raised the price of 19-kg commercial LPG, which is used by hotels and restaurants, by ₹42 to to ₹3,113.50 per cylinder in Delhi. The price of a 14.2-kg domestic LPG cylinder is unchanged at ₹913.
The prices of 5 kg FTL (Free Trade LPG) cylinders has been hiked by ₹11 to ₹821.50 per cylinder in Delhi, effective June 1, 2026.
The government has set up a three-member committee of Executive Directors of the three PSU OMCs in consultation with States and industry bodies to finalise the plan for the sale of commercial LPG in the States/UTs. During May 2026, a total of 2,09,353 tonnes of commercial LPG was sold, Sharma noted.
Similarly, about 8,382 tonnes of Auto LPG was sold by PSU OMCs in May 2026, which is a 170 per cent increase over February 2026.
India’s production of LPG hit a record 52,000 TPD last week from roughly 46,000 TPD at the beginning of May 2026 as refineries such as Vadinar resumed operations following a maintenance shut down in April 2026.
India’s average LPG production had declined to around 46,000-47,000 TPD in the first week of April 2026 compared to 50,000 TPD achieved in the last week of March.
India’s LPG supply continues to be affected by the prevailing geopolitical situation in West Asia and the closure of the Strait of Hormuz (SoH), which has almost completely choked more than half of the country’s demand. The country imports 60 per cent of its domestic demand, of which 90 per cent comes from Middle East Gulf (MEG) region.
As per the IEA, closure of the SoH has adversely impacted 430,000 barrels per day (kb/d) of LPG cargoes during March-April 2026.