What is driving the rise in gas prices in India?
The ongoing crisis in the Middle East raises the question: why are gas prices in India surging? The answer lies in supply disruptions caused by regional tensions, particularly affecting liquefied petroleum gas (LPG) and liquefied natural gas (LNG) supplies.
As of March 11, 2026, the price of a 14.2 kg non-subsidised LPG cylinder in Delhi has reached ₹913.00, following a ₹60 hike implemented on March 7. This increase is significant given that India imports around 60 percent of its total LPG demand, primarily from the Middle East.
The crisis has led to disruptions in shipments through the Strait of Hormuz, a crucial global energy transit corridor. This has tightened supplies, with heightened security risks affecting tanker movements. As a result, gas prices are expected to remain volatile.
Adani Total Gas, one of the major players in the market, has seen its shares jump by 13.08 percent due to a price hike for industrial clients. The company has increased gas prices in response to disruptions in LNG supply routes, further contributing to the rising costs.
Other gas-related stocks, such as Gujarat Gas, have also rallied sharply, with increases of up to 15 percent. This reflects investor confidence in the sector despite the challenges posed by the ongoing conflict in the Middle East.
The situation has been exacerbated by Qatar halting LNG production due to the conflict in West Asia, which has further strained supply chains. European natural gas prices surged nearly 40 percent last week, indicating a broader impact on global energy markets.
Domestic cooking gas prices have risen by ₹60 per cylinder, while commercial LPG prices have increased by ₹114.5. This trend highlights the interconnectedness of global energy markets and the direct impact of geopolitical events on local economies.
India’s reliance on imports for its energy needs underscores the vulnerability of its gas market to international disruptions. As the conflict continues, the long-term implications for gas prices in India remain uncertain.
In summary, the rise in gas prices in India is a direct consequence of the ongoing Middle East crisis, with significant implications for consumers and the energy market as a whole.
