What is driving the recent increase in gas prices in India?
The ongoing crisis in the Middle East has raised significant concerns about 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 can be attributed to a shortage of LPG supplies, which has been exacerbated by regional tensions.
India imports around 60 percent of its total LPG demand, primarily from the Middle East, making the country particularly vulnerable to disruptions in this region. The conflict has already begun to affect India’s energy market, particularly impacting natural gas and LPG supplies.
Market Reactions and Stock Performance
In response to the rising gas prices, shares of gas-related companies have seen notable increases. Adani Total Gas shares jumped by 13.08 percent, reflecting the market’s reaction to the price hike for industrial clients. The rise in share prices is also linked to supply problems arising from the ongoing conflict in the Middle East.
Other gas-related stocks, including Gujarat Gas, have rallied sharply, with increases of up to 15 percent. This trend highlights the broader impact of the crisis on the energy sector in India.
Global Context and Supply Disruptions
The Strait of Hormuz, a crucial global energy transit corridor, is currently facing severe disruptions due to heightened security risks. This has tightened supplies and contributed to the rising gas prices in India. Additionally, Qatar has halted LNG production because of the conflict in West Asia, further straining the supply chain.
European natural gas prices surged nearly 40 percent last week following Qatar Energy’s production stoppage at a key LNG facility, indicating the global ramifications of the regional crisis.
Looking Ahead
As the situation in the Middle East continues to evolve, the impact on gas prices in India remains a critical concern. With domestic cooking gas prices having increased significantly, the long-term effects on consumers and the broader economy are yet to be fully understood. Details remain unconfirmed regarding future price adjustments and supply stability.
