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    Govt Raises Commercial LPG Allocation to 70 Percent Prices Stay Elevated

    Govt Raises Commercial LPG Allocation to 70%, Prices Stay Elevated


    Finance Outlook India Team | Saturday, 28 March 2026

    The government has increased the allocation of commercial LPG to 70%, prioritising key industries such as steel, automobiles, chemicals, and textiles amid supply disruptions linked to the West Asia conflict. The move, which represents a 20% increase in allocation, is aimed at ensuring uninterrupted industrial activity and stabilising the economy during ongoing global energy uncertainties.

    Key Highlights

    • Government raises commercial LPG allocation to 70% to support industries amid ongoing global supply disruptions.
    • LPG prices remain high across metros including Bengaluru, impacting businesses despite increased allocation and supply measures.

    At the same time, LPG prices remain elevated due to global energy pressures. As of March 2026, the price of a 19 kg commercial LPG cylinder is approximately:

    • Rs 1,883 in Delhi
    • Rs 1,836 in Mumbai
    • Rs 1,988 in Kolkata
    • Rs 2,043 in Chennai
    • Rs 1,958 in Bengaluru

    In some cases, prices have fluctuated further due to supply shortages, with private suppliers reportedly charging ₹300 more per cylinder or even higher in certain regions.

    For comparison, domestic LPG cylinder prices (14.2 kg) are currently around Rs 912–930 across major metros

    Despite stable official pricing, industry players continue to face challenges due to inconsistent supply on the ground. Restaurants and small businesses, in particular, have highlighted that increased allocation has not yet fully translated into reliable availability.

    Also Read: LPG Cylinder Shortage: Govt Assures100% Supply; Check City-Wise Prices

    Overall, while the government’s move to boost LPG allocation provides relief to priority sectors, elevated prices and supply constraints continue to weigh on businesses, reflecting the broader impact of global energy volatility.



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