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India Raises Cooking Gas Prices as Iran War Hits Supply

India Raises Cooking Gas Prices as Iran War Hits Supply

by | Mar 7, 2026 | Nation | 0 comments

India has raised the price of liquefied petroleum gas (LPG) used for cooking after global supply disruptions linked to the Iran conflict pushed energy costs higher. The increase marks the first major price adjustment in about a year.

State-run refiners including Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum increased the price of a 14.2-kg LPG cylinder in Delhi by about 7% to ₹913 ($9.93). At the same time, companies raised the price of 19-kg commercial cylinders used by restaurants and hotels to ₹1,883.

Meanwhile, officials say the price increase reflects rising global energy costs after supply disruptions from the Middle East.

⛽ Middle East Conflict Disrupts LPG Supply

Energy markets have experienced significant volatility after the U.S.–Israel conflict with Iran disrupted energy shipments from the Middle East. The region normally supplies a large share of global oil and gas exports.

Consequently, countries that depend heavily on imports have started facing higher prices and tighter supply conditions.

India remains particularly exposed because it imports most of its cooking gas from the Gulf region. In fact, 85% to 90% of India’s LPG imports come from the Middle East, making the country sensitive to geopolitical disruptions in that area.

📦 India Relies Heavily on Imported Cooking Gas

India is the world’s second-largest importer of LPG, and demand for the fuel continues to grow as millions of households rely on gas cylinders for cooking.

In 2025 India consumed about 33.15 million metric tons of LPG, with roughly two-thirds of that supply coming from imports.

Because of this dependence, global supply disruptions quickly affect domestic fuel costs.

🏭 Government Pushes for Higher Domestic Output

To reduce the risk of shortages, the Indian government has asked refiners to increase local LPG production. The move aims to stabilise supply and protect consumers from further disruptions.

Meanwhile, energy officials continue to monitor international markets as the conflict in the Middle East affects global oil and gas flows.

Experts warn that prolonged geopolitical tensions could keep energy prices elevated. Therefore, governments and energy companies are working to strengthen supply chains and secure additional sources of fuel.

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