Amid rising tensions in West Asia, Iran has taken control of the strategic Strait of Hormuz, attacking vessels passing through the route and disrupting oil transportation. The move has caused fuel and gas shortages in several countries, including India. Domestic LPG cylinder prices in India have increased by ₹60, prompting criticism from opposition parties, who claim the burden is being passed on to ordinary citizens. Government sources, however, say that international energy market dynamics and geopolitical factors must be considered to understand the economic context.
India imports nearly 60% of its LPG requirements from abroad, making it sensitive to the Saudi Contract Price (Saudi CP), which sets international gas rates. The Saudi CP rose from $385 per metric ton in July 2023 to $466 by November 2025, an increase of around 21%. Despite this, the Indian government’s intervention reduced domestic cylinder prices from ₹1,103 to ₹853 during the same period, effectively shielding consumers from the full impact of rising global prices.
The disruption of oil shipments through the Strait of Hormuz has increased international prices further due to transport delays and higher insurance costs. Currently, the supply cost of one cylinder ranges between ₹950 and ₹1,050, while in Delhi, consumers receive it at ₹913. The government and oil companies are absorbing the difference, capping the price increase at ₹60 instead of the ₹130 that global rates would suggest.
Compared to neighboring countries, India’s LPG prices remain among the lowest: Delhi – ₹913; Pakistan – around ₹1,046; Nepal – around ₹1,207; Sri Lanka – around ₹1,241. For a typical family of four, using four to five cylinders annually, the ₹60 price hike translates to an additional daily cost of just 80 paise, according to government sources.