What is driving the rise in gas prices in India?
The ongoing crisis in the Middle East has raised a crucial question: how will it impact gas prices in India? The answer is evident as the country grapples with rising costs and supply shortages.
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 surge is primarily attributed to the fact that India imports around 60 percent of its total LPG demand, predominantly from the Middle East.
Recent events have exacerbated the situation. The Strait of Hormuz, a vital energy transit corridor, is facing severe disruptions due to regional tensions, which have tightened supplies and heightened security risks for tanker movements.
Moreover, Qatar has halted LNG production amid the ongoing conflict in West Asia, further straining India’s gas supply. The impact of these disruptions is evident in the stock market, where shares of Adani Total Gas have surged by 13.08 percent, reflecting the rising prices for industrial clients.
Gas-related stocks, including Gujarat Gas, have also rallied sharply, with increases of up to 15 percent. This market response underscores the interconnectedness of global energy supply chains and the immediate effects of geopolitical instability.
In addition to domestic LPG price hikes, commercial LPG prices have risen by ₹114.5. The broader implications of these increases are significant, as they affect not only household budgets but also the operational costs for businesses reliant on gas.
European natural gas prices surged nearly 40% last week following Qatar Energy’s production halt, illustrating the global ripple effects of the Middle East crisis on energy markets.
As India continues to rely heavily on imports to meet its cooking gas needs, the situation remains precarious. The conflict in the Middle East has started to significantly affect India’s energy market, particularly natural gas and LPG supplies.
Details remain unconfirmed regarding the long-term implications of these developments, but the immediate future of gas prices in India appears uncertain as the situation evolves.
