India increases LPG prices as Iran conflict hits supply

India has implemented its first price hike for liquefied petroleum gas (LPG) in nearly a year, as escalating geopolitical tensions in the Middle East disrupt global energy supplies. State-run refiners, led by Indian Oil Corp, increased the cost of a standard 14.2-kg domestic cylinder in Delhi by 7%, bringing the price to 913 rupees ($9.93). The price adjustment comes as a direct response to surging international costs fueled by the conflict involving the United States, Israel, and Iran. These hostilities have threatened the stability of supply routes from the Middle East, a region that provides between 85% and 90% of India's LPG imports. As the world's second-largest importer of the fuel, India consumed 33.15 million metric tons of cooking gas last year. With imports accounting for roughly two-thirds of total consumption, the domestic market remains highly sensitive to fluctuations in global benchmarks. Industry players such as Dorian LPG Ltd. operate within this volatile global shipping and supply environment, where regional instability often translates into immediate price pressures for end consumers. In addition to domestic fuel, prices for 19-kg commercial cylinders—primarily used by hotels and restaurants—were raised to 1,883 rupees from 1,768.50 rupees. To mitigate potential shortages, the Indian government has directed domestic refiners, including Bharat Petroleum Corp and Hindustan Petroleum Corp, to maximize LPG production.