How is the ongoing Middle East crisis affecting gas prices in India?
The ongoing crisis in the Middle East has triggered a significant increase in gas prices in India, particularly affecting liquefied petroleum gas (LPG) and liquefied natural gas (LNG). 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 hike implemented on March 7.
India imports around 60 percent of its total LPG demand, primarily from the Middle East. This heavy reliance on imports has made the country vulnerable to fluctuations in global energy markets. The current geopolitical tensions have disrupted supply routes, leading to increased costs for consumers.
Adani Total Gas Limited (ATGL) has seen its shares jump by 13.08 percent due to a price hike for industrial clients, reflecting the broader impact of these supply disruptions. The company has raised gas prices in response to the ongoing conflict, which has affected liquefied natural gas supply routes.
Gas-related stocks, including those of Adani Total Gas and Gujarat Gas, have rallied sharply, with increases of up to 15 percent. This surge is indicative of investor sentiment reacting to the tightening supply conditions in the energy market.
The Strait of Hormuz, a crucial global energy transit corridor, is currently facing severe disruptions amid regional tensions. These disruptions have heightened security risks for tanker movements, further tightening supplies. As a result, domestic cooking gas prices have increased, with commercial LPG prices rising by ₹114.5.
Additionally, European natural gas prices surged nearly 40 percent last week after Qatar Energy halted production at a key LNG facility due to the conflict in West Asia. This escalation in prices overseas is likely to have ripple effects on the Indian market.
Experts note that the conflict in the Middle East has started to significantly affect India’s energy market, particularly natural gas and LPG supplies. With nearly 60 percent of its LPG demand sourced from overseas, India is closely monitoring the situation.
As the crisis unfolds, the full extent of its impact on gas prices in India remains to be seen. Details remain unconfirmed regarding how long these price increases will persist and whether further hikes are on the horizon.
