What is driving the rise in gas prices in India?
The ongoing crisis in the Middle East has raised significant concerns regarding gas prices in India, leading to a notable increase in costs. 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 approximately 60 percent of its total LPG demand, primarily from the Middle East, making the country particularly vulnerable to disruptions in supply. The current geopolitical tensions have triggered a shortage of LPG, which is now impacting domestic consumers.
Recent developments have seen shares of Adani Total Gas jump by 13.08 percent, attributed to a price hike for industrial clients amid these supply challenges. The rise in stock prices reflects investor confidence in the company’s ability to navigate the current crisis.
Additionally, disruptions in liquefied natural gas (LNG) supply routes have forced Adani Total Gas to increase gas prices. The Strait of Hormuz, a critical transit corridor for global energy supplies, is experiencing severe disruptions, which have tightened gas availability.
Qatar, a major supplier of LNG, has halted production due to the ongoing conflict in West Asia, further exacerbating the situation. This has led to a ripple effect, with European natural gas prices surging nearly 40% last week as a result of these supply chain issues.
Domestic cooking gas prices have seen a significant increase, with commercial LPG prices rising by ₹114.5. The impact of these price hikes is felt across various sectors, particularly among households reliant on LPG for cooking.
As the conflict in the Middle East continues, it remains uncertain how long these price increases will persist. The situation is fluid, and further developments could lead to additional changes in gas prices.
India’s reliance on imports for over half of its liquefied natural gas requirements underscores the vulnerability of its energy market to international disruptions. The current crisis serves as a stark reminder of the interconnectedness of global energy supplies.
Details remain unconfirmed regarding the long-term implications of these price hikes and potential government interventions to stabilize the market. Stakeholders are closely monitoring the situation as it evolves.
