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.

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Indian families face an acute cooking gas shortage due to the ongoing conflict in West Asia, which has disrupted supply chains. As the world’s second-largest buyer of liquefied petroleum gas (LPG), India sources over 90% of its supplies from the Middle East, making it particularly vulnerable to geopolitical tensions.

In the fiscal year 2024-25, India consumed 31.3 million tonnes of LPG but produced only 12.8 million tonnes domestically. This heavy reliance on imports has raised concerns about the availability of cooking gas for the approximately 33 crore active LPG connections in the country.

The Ministry of Petroleum and Natural Gas has responded by ordering all oil refining companies to maximize LPG production to meet household needs. “All oil refining companies operating in India shall maximise and ensure that Propane and Butane streams produced, recovered, fractionated or otherwise available with them are utilised for production of liquefied petroleum gas (LPG),” the ministry stated.

As a direct consequence of the supply issues, the price of a 14.2kg domestic LPG cylinder has increased by Rs 60, reaching Rs 913 in Delhi. This price hike is particularly concerning for households that rely heavily on LPG for cooking.

Approximately 54% of India’s total natural gas consumption is met through liquefied natural gas (LNG) imports. However, GAIL reported that its long-term supplier, Petronet LNG Limited, issued a force majeure notice, reducing LNG allocations to zero. This has raised alarms about potential supply curtailments.

The crisis intensified last week when Qatar, one of India’s top-three suppliers of natural gas, declared a production stoppage for LNG and associated products. GAIL is currently assessing the situation regarding any supply curtailment that may need to be imposed on its downstream customers.

Public sector oil marketing companies have locked in 2.2 million tonnes of US Gulf Coast imports for 2026, which accounts for about 10% of India’s annual needs. However, the ongoing conflict raises uncertainties about whether these measures will be sufficient to stabilize the situation.

India’s heavy reliance on imports that come through the Strait of Hormuz has made total price protection challenging. With 85-90% of LPG imports passing through this critical chokepoint, any disruption can have significant repercussions on domestic supply.

Details remain unconfirmed regarding the exact impact of the ongoing West Asia conflict on future gas supplies. Additionally, the long-term viability of production at current spot prices remains in question, as the situation continues to evolve.

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