What is driving the recent increase in gas prices in India?
The ongoing crisis in the Middle East has raised significant concerns regarding gas prices in India. 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. This surge is primarily attributed to a shortage of LPG, with India relying heavily on imports to meet its cooking gas needs.
India imports around 60 percent of its total LPG demand, predominantly from the Middle East. The disruption in supply routes, particularly through the Strait of Hormuz, has tightened the availability of gas supplies, leading to increased prices. The conflict in the region has started to have a tangible impact on India’s energy market, particularly concerning natural gas and LPG supplies.
Market Reactions and Stock Performance
The market has reacted sharply to these developments. Shares of Adani Total Gas have jumped by 13.08 percent, reflecting the company’s response to rising gas prices for industrial clients. Additionally, gas-related stocks such as Gujarat Gas have rallied, with increases of up to 15 percent observed.
Adani Total Gas Limited has attributed the rise in its share price to supply problems stemming from the ongoing conflict in the Middle East. The disruptions in shipments through the Strait of Hormuz, a key global energy transit corridor, have heightened security risks for tanker movements, further exacerbating supply issues.
Broader Implications for Energy Prices
The situation is not limited to LPG. The conflict has also affected liquefied natural gas (LNG) supplies. Qatar has halted LNG production due to the ongoing conflict in West Asia, leading to a nearly 40 percent surge in European natural gas prices last week. This increase in global prices is likely to have a cascading effect on domestic markets.
Domestic cooking gas prices have risen by ₹60 per cylinder, while commercial LPG prices have seen an increase of ₹114.5. The ramifications of these price hikes are significant, as they directly impact consumers and businesses alike.
Looking Ahead
As the situation evolves, the full extent of the impact on gas prices in India remains to be seen. The reliance on imports for over half of the country’s liquefied natural gas requirements means that any further disruptions could lead to additional price increases. Details remain unconfirmed regarding how long these supply issues will persist and what measures might be taken to mitigate their effects.
