LPG Prices Hike: Why LPG Gas Cylinder Is Costlier By Rs 300-336 In Patna, Hyderabad Than Mumbai, Delhi?

The commercial LPG cylinder prices were hiked for the second consecutive month in October 2026, while the prices of domestic LPG cylinders remained unchanged. The reasons for increasing LPGs are elevated crude oil prices, supply crunch, and geopolitical risks in the Middle East. The latest hike in 19 kg of commercial LPG cylinders stood around Rs 62.50 to Rs 71.50 per cylinder. However, LPG in states like Bihar and Hyderabad was costlier by Rs 300 to Rs 340 compared to cities like Mumbai and Delhi. Why is LPG costly in some states and below Rs 3,000 in other states?

LPG Prices In India

Commercial LPG cylinders which are sold in 19Kg and above, were increased by Rs 62.50 to Rs 71.50 across cities in the country for October 2026. The biggest hike was in Patna and Kolkata, while the lowest hike was made in LPG cylinders sold in Delhi.

However, LPG cylinders are beyond Rs 3,000 threshold in two cities namely Patna and Hyderabad. While the cheapest 19 Kg LPGs are sold in Mumbai followed by Delhi.

LPG is particularly lowest at Rs 2,764.50 per cylinder in Mumbai and at Rs 2,810 in Delhi. But LPG is most expensive at Rs 3,100.50 in Patna followed by Hyderabad at Rs 3,065 per cylinder.

The gap between LPG prices in Hyderabad and Mumbai is Rs 300.50, and with Patna is Rs 336.

In case of 14.2 Kg domestic LPG cylinders, it is available at Rs 1,031.50 in Patna, higher by Rs 90 from LPG sold at Rs 941.50 per cylinder in Mumbai.

This brings the question to why LPG prices are expensive in some cities than compared to others. The reason is typically due to transportation and distribution costs, state-level taxes, and local supply-chain expenses.

However, the size of the prices gap varies from domestic to commercial LPG cylinders.

Why LPG Is Expensive In Some Cities And Cheaper In Some Cities?

The first reason is transportation and distribution costs. LPG cylinders are required to be transported from refiners, import terminals or bottling plants to arrive at local distributors. There are usually inland freight, delivery distances, and distribution infrastructure costs added to the final price of LPG cylinders.

2. The second reason could be the difference in state-level local taxes that are imposed on LPGs.

3. The commercial cylinder used by hotels and businesses is revised automatically every month because its price is a direct pass-through of the international benchmark. The domestic cooking cylinder is not. India used to import 60% of its LPG requirements, and the landed cost of that import tracks the Saudi Contract Price (CP) that Saudi Aramco sets at the start of each month. This is an external price over which the Indian consumer has no control, as per Oil Ministry explainer.

4. The commercial LPG cylinders carry a higher tax rate and larger margins compared to domestic LPG, so it sits above the household's cost-reflective level.

That being said, the commercial prices are different state-wise and are impacted by distribution costs and local charges, alongside the pricing structure.