What is driving the recent surge in gas prices in India?
The ongoing crisis in the Middle East has raised critical questions about the stability of gas prices in India. As of March 11, 2026, the price of a 14.2 kg non-subsidised LPG cylinder in Delhi stands at ₹913.00, following a ₹60 increase on March 7. This rise is attributed to significant disruptions in supply routes, particularly affecting liquefied petroleum gas (LPG) and liquefied natural gas (LNG).
India imports around 60 percent of its total LPG demand, primarily from the Middle East. The current geopolitical tensions have led to a shortage of LPG, which is crucial for domestic cooking. As a result, domestic cooking gas prices have surged, with commercial LPG prices also rising by ₹114.5.
Gas-related stocks have reacted sharply to these developments. Adani Total Gas shares jumped by 13.08 percent, reflecting investor confidence amid the price hikes for industrial clients. The rise in share prices is closely linked to the ongoing supply issues stemming from the Middle East conflict.
Additionally, the Strait of Hormuz, a vital global energy transit corridor, is facing severe disruptions. This has heightened security risks for tanker movements, further tightening gas supplies. The situation is compounded by Qatar halting LNG production due to the conflict in West Asia, which has led to a nearly 40 percent surge in European natural gas prices last week.
Industry experts note that disruptions in shipments through the Strait of Hormuz have tightened supplies, leading to increased gas prices in India. “India relies heavily on imports to meet its cooking gas needs, with nearly 60% of its total LPG demand sourced from overseas,” an industry analyst stated.
The implications of these rising gas prices are significant for consumers and businesses alike. As the crisis unfolds, the energy market in India is likely to face continued volatility, affecting both domestic and commercial users.
While the current situation presents immediate challenges, it also raises questions about India’s long-term energy strategy and its reliance on imports. The government may need to explore alternative sources and strategies to mitigate the impact of such geopolitical crises on energy prices.
As the situation develops, further details remain unconfirmed regarding the potential for additional price hikes or changes in supply dynamics. Stakeholders in the energy sector are closely monitoring the situation, hoping for stabilization in the coming weeks.
