India raises commercial LPG and jet fuel prices amid supply pressure

NEW DELHI: India increased the prices of commercial liquefied petroleum gas and jet fuel for international airlines on Friday, as supply strains linked to the Middle East war continued to affect energy markets, according to a state-run energy company.

State-run Indian Oil Corporation Limited (IOCL), described as the country’s leading energy marketing company, said "Prices of bulk and commercial LPG cylinders have been revised".

According to IOCL’s price chart, the price of a 19-kilogramme LPG cylinder meant for commercial use has been raised by 993 rupees, or $10.50. In New Delhi, that represents an increase of nearly 48 per cent. The company’s catalogue also showed that local levies mean prices differ from one city to another.

The increase is expected to place added pressure on restaurants in particular, with the report noting that many have already been cutting back operations during the Middle East war. The latest revision affects commercial consumers at a time when India has been trying to prioritise supplies for households and essential sectors.

India relies heavily on imported energy, including for about 60 per cent of its LPG needs. LPG is widely used as a cooking fuel by a large section of the population in the world’s largest population. Since the Middle East war began in late February, imports have been disrupted, prompting New Delhi to take steps aimed at ensuring that homes and essential sectors continue to receive supplies.

That approach, however, has left a number of commercial users under pressure, including restaurants, manufacturers and power plants. Despite the disruption, the government has maintained that the country is not facing an overall fuel shortage.

IOCL also said the price of jet fuel for international airline operations had 'been adjusted upward'.

According to the company’s catalogue, aviation turbine fuel rose by around 5 per cent in Delhi.

The price changes come as the broader fallout from the Middle East conflict continues to affect energy-importing countries. In India’s case, the disruption has had a direct impact on fuel supplies and pricing, particularly in sectors dependent on imported LPG and aviation fuel.

Commercial users face the brunt

While household and essential demand has been prioritised, the latest increase underscores the burden being borne by commercial consumers. Restaurants are among the sectors likely to feel the impact most sharply, while manufacturers and power plants have also been affected by supply constraints since the conflict began.

The government’s position, however, remains that there is no nationwide shortage of fuel, even as price revisions and supply disruptions continue to reshape the market.