India has raised prices for its most widely used cooking gas—liquefied petroleum gas (LPG)—for the first time in nearly a year, as the conflict in Iran disrupts energy flows across the Middle East and pushes up fuel costs.
First Price Hike Since April
Indian Oil, the country’s largest refiner, increased the price of a 14.2-kilogram LPG cylinder in New Delhi by 7% to 913 rupees (approximately $9.95), according to its official website. This marks the first price adjustment for household consumers since April. State-owned retailers Bharat Petroleum and Hindustan Petroleum followed suit, aligning their pricing in response to rising global oil prices fueled by regional instability.
Heavy Reliance on Middle Eastern Supplies
As the world’s third-largest LPG consumer, India imports over 90% of its supply from the Middle East. Much of this passes through the Strait of Hormuz—a critical maritime chokepoint now effectively closed to cargo traffic. The disruption is tightening supply chains for a fuel essential to cooking across the country.
Impact on Low-Income Households
Although low-income households continue to receive a government subsidy of 300 rupees per cylinder, they will now pay an additional 60 rupees out of pocket, bringing the effective price to 613 rupees per cylinder, according to a senior government official speaking to journalists in New Delhi.
This price increase affects roughly 333 million Indian households that rely on LPG for cooking. Urban consumers also have access to piped natural gas, but for most, LPG remains the primary option.
Inflationary Pressures and Commercial Impact
Higher cooking gas prices are likely to contribute to broader inflationary pressures. Meanwhile, commercial LPG cylinders—used by hotels and restaurants—rose by 6.5% to 1,883 rupees, per Indian Oil. These rates, revised monthly, had last increased by just 1.6% on 1 March.
Government Measures to Secure Supply
To bolster LPG stocks, the Indian government has urged refineries to maximize output and prioritize household users—while restricting supplies to petrochemical plants. Officials justified the price hike as a necessary reflection of rising international benchmark prices, while reaffirming a commitment to hold gasoline and diesel prices steady.