Despite of providing subsidies for clean energy, the use of clean cooking fuel has increased slightly, even with an increase in income and a decrease in poverty. The uptake rate of clean cooking fuel is significantly determined by the development indicators including women empowerment and the peer effect of energy consumption. The study aims to evaluate the preference for clean cooking fuel such as LPG at the village level considering the presence of the peer effect of energy consumption and the status of women empowerment. We argue that the village level peer effect along with women empowerment plays an important role in the adoption of Liquefied Petroleum Gas. The analysis using data from the India Human Development Survey (IHDS)—II, 2011–2012 and a Multinomial Logit (MNL) regression model, shows that political and social empowerment of women in villages is associated with the adoption of LPG as clean cooking fuel. To our knowledge, the uniqueness of this paper is that it evaluated the use of LPG in connection with gender empowerment at the village level to capture the peer effect of energy choice.