Gas Price Update: Rising Costs Amid Middle East Crisis

What is driving the rise in gas prices in India?

The ongoing crisis in the Middle East has raised a critical question: why are gas prices in India surging? The answer lies in significant supply disruptions affecting liquefied petroleum gas (LPG) and liquefied natural gas (LNG) imports, which are crucial for the country.

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 increase on March 7. India imports around 60 percent of its total LPG demand, primarily from the Middle East, making it vulnerable to fluctuations in global supply.

The crisis has been exacerbated by severe disruptions in the Strait of Hormuz, a vital energy transit corridor, where heightened security risks have affected tanker movements. This situation has led to significant price hikes in both domestic and commercial LPG, with commercial prices increasing by ₹114.5.

Adani Total Gas Limited has seen its shares rise by 13.08 percent due to these supply issues, reflecting investor confidence amid rising gas prices. The company has adjusted its gas prices in response to disruptions in LNG supply routes, contributing to a broader rally in gas-related stocks, including Gujarat Gas, which have surged by as much as 15 percent.

Furthermore, the conflict in West Asia has led Qatar to halt LNG production, further tightening supply chains. European natural gas prices surged nearly 40 percent last week following this development, indicating a ripple effect that is impacting global markets.

As India relies heavily on imports to meet its cooking gas needs, the rising costs are a significant concern for consumers and businesses alike. The increase in domestic LPG prices is particularly troubling for households, as many depend on this essential fuel for daily cooking.

Looking ahead, the situation remains fluid, with ongoing tensions in the Middle East likely to continue affecting gas prices in India. The full extent of the impact on the energy market is still unfolding, and details remain unconfirmed.

In summary, the current rise in gas prices in India is a direct consequence of geopolitical tensions and supply chain disruptions, highlighting the country’s reliance on imported energy sources.