India’s LPG ecosystem faced a major shock

India’s LPG sector was jolted in 2026 as prices surged sharply. Domestic cylinders became costlier by nearly ₹60, while commercial 19 kg units climbed by around ₹115. The spike was driven by global energy turbulence and supply chain disruptions, particularly through the Strait of Hormuz — a critical passage for India’s imports, where nearly 85–90% of LPG shipments from Gulf nations transit.
The conflict involving the US, Israel, and Iran has slowed shipping traffic, squeezing supplies to Indian cities such as Bengaluru, Mumbai, and Chennai. Restaurants and hotels, heavily reliant on commercial cylinders, have sounded alarms over reduced operations and even possible shutdowns if the crunch continues.
India’s dependence on imports remains high, with 60–65% of its LPG needs met from abroad in 2025, largely sourced from the UAE, Qatar, Saudi Arabia, and Kuwait. To mitigate risks, the country has begun diversifying supply lines through long‑term contracts with the United States.
Government policy has prioritized household availability, ensuring domestic kitchens remain supplied, but industry bodies warn that the hospitality sector is bearing the brunt. Panic bookings and delivery delays have added to the strain, underscoring the vulnerability of India’s energy ecosystem to global geopolitical shocks.

• Mar 12, 2026
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