Gas Cylinder New Rules In August 2026: Will Indane Gas, HP Gas, Bharat Gas Prices Hike Again After Cut In July

LPG prices in India are likely to be revised on August 1, 2026, which is expected to be the biggest change for the month in case of petroleum products. OMCs are back to facing elevated crude oil prices and heightened hostile situation between the US and Iran, which has once again hampered transitions at the Strait of Hormuz. The West Asia war has been fatal for the global economy, with an energy crisis that pushed countries, including India, to hike gasoline prices and other petroleum products. LPG was not spared, as 19 Kg commercial gas cylinder prices were hiked five times since the US-Israel-Iran war broke out, and domestic 14.2 Kg LPG prices have been raised twice to date. Accordingly, it will be keenly watched if LPG prices are hiked for in the month of August after their first 2026 cut in July.

Will Indane Gas, HP Gas & Bharat Gas Prices Rise In August 2026?

The latest situation in Middle East is that --- US and Iran are back to fighting each other, making fresh airstrikes and keeping the transportation at Red Sea fragile. Amidst this escalation, the Iran-backed proxy in Yemen, Houthi have also joined the war bandwagon by threatening to disrupt maritime traffic at the Strait of Hormuz. They have reportedly carried attacks on oil vessels of Saudi Arabi, intensifying the geopolitical risks.

If Strait of Hormuz, a chokepoint where 20% of global oil and gas are transitioned, was not enough. Iran has directed Houthis to shutdown another chokepoint the Bab-el-Mandeb Strait (Bab). This dual threat poses a severe risk to global energy supply chain.

As per CareEdge report, India's energy security remains highly vulnerable to disruptions in the Strait of Hormuz and the Red Sea. Around 40% of India's crude imports and a significant share of LNG and LPG supplies pass through Hormuz. Brent crude oil peaked at $115 per barrel in May 2026 following disruptions in the Hormuz, while simultaneous disruptions in both chokepoints could push prices to $130-135 per barrel, fuelling inflation and disrupting energy supplies.

The dual disruption at Hormuz and Bab is driving inflation, straining foreign exchange reserves, and affecting crude oil, petroleum products, LPG, fertilisers, aviation, basmati rice, and packaging based on plastic polymers, among others, as per CareEdge's note.

Accordingly, the rating agency believes that a sustained rise in crude prices would widen India's current account deficit, put upward pressure on inflation, increase depreciation pressures on the rupee, and elevate hedging and input costs for import-dependent sectors.

Among the most affected sectors are LPG and LNG.

"Vulnerabilities are particularly high for LPG and LNG supplies, given India's significant reliance on the Strait of Hormuz for these imports. Indian companies operating in affected sectors would likely face pressure on profit margins due to higher raw material costs, elevated logistics and insurance costs, as well as higher working capital requirements," said CareEdge's note.

Hence, probability of hike in LPG prices in India in August is high. Both Brent crude and US WTI crude oil are up by 20% to 21% in July 2026 so far. The highest level touched in July was above $101 per barrel, which will significantly impact petroleum product prices.

LPG Prices In India:

In July 2026, LPG prices were reduced for the first time this year for 19 Kg commercial gas cylinders by Rs 173 to Rs 183.50. Accordingly, in July 2026, the 19 Kg LPG cylinder was priced at Rs 2,930 in Delhi, at Rs 3,081.50 in Kolkata, at Rs 2,885.50 in Mumbai and at Rs 3,106 in Chennai.

However, the prices of 14.2 Kg LPG cylinders were kept unchanged after two hikes on March 7th and June 7th. The current rate is at Rs 942 per cylinder in Delhi, at Rs 968 in Kolkata, at Rs 941.50 in Mumbai and at Rs 957.50 in Chennai.

The highest LPG rate is in Bihar at Rs 3,227 per 19 Kg cylinder and at Rs 1,031.50 per 14.2 Kg cylinder. While commercial LPG is still above Rs 3,000 mark in cities like Kolkata, Chennai, Bangalore, Bhubaneswar, Hyderabad, Lucknow and Patna.

There are different types of LPG cylinders in India. As per Indian Oil website, the 5 kg and 14.2 kg cylinders are largely meant for domestic use and comprise almost 90% of all gas distributed,, while the 19 kg, 47.5 kg and 425 kg Jumbo cylinders are marketed for industrial and commercial consumption.