OGRA fixes LPG price at Rs226/kg for February

As winter demand stays high, the Oil and Gas Regulatory Authority (OGRA) has notified a new maximum price for liquefied petroleum gas (LPG), fixing the consumer cap at Rs226.05 per kilogram, effective February 1, 2026.

According to the OGRA notification issued on January 31, the maximum price of an 11.8kg LPG cylinder has been set at Rs2,667.40, offering price certainty to consumers who rely on LPG for cooking and heating during peak winter months, particularly in colder regions and gas-deficit urban pockets.

The price determination is based on a regulated producer price of Rs184,750.87 per metric ton, or Rs2,180.06 per 11.8kg cylinder, inclusive of 18 percent GST. This producer price includes the base LPG price, petroleum levy of Rs4,669 per ton, and applicable taxes.

OGRA has allowed a total margin of Rs35,000 per metric ton for marketing, distribution, and transportation, broken down into Rs17,000 for marketing margin, Rs10,000 for distribution margin, and Rs8,000 for transportation. After adding GST of Rs6,300 per ton on these margins, the final maximum consumer price reaches Rs226,050 per metric ton.

On a per-cylinder basis, the distribution chain margin amounts to Rs413, with an additional GST impact of Rs74.34, pushing the consumer ceiling to Rs2,667.40 for the commonly used 11.8kg cylinder. On a per-kilogram basis, this translates into the notified cap of Rs226.05.

While the notification provides a regulatory ceiling, OGRA has clarified that producers, marketing companies, and distributors are free to sell LPG below the maximum notified price, a provision that becomes particularly relevant amid winter supply-demand pressures and regional price variations.

LPG consumption typically rises sharply in winter as households supplement or replace piped natural gas with cylinders for cooking, heating, and small commercial use. Any deviation above the notified price, especially in colder areas, often draws public concern due to the direct impact on household budgets.

The authority reiterated that LPG prices are regulated at all levels of the supply chain under the LPG Policy 2016, aiming to curb excessive profiteering during high-demand seasons while ensuring availability across the country.

The new prices will come into force from February 1, 2026, setting the official benchmark for LPG sales nationwide as winter demand remains elevated.