Despite a ceasefire being announced between the US and Iran with the assurance of Strait of Hormuz to be opened soon, the uncertainty over the availability of liquefied petroleum gas (LPG) is likely to continue for India, warned government official.
While the prices of crude oil is likely to come down, the availability of gas will still remain a challenge as there is still no clarity regarding the extent of damage caused in the production cites of the gas in the Gulf countries, said the official. Thus, there is a fear that the price of LPG might not come down soon like oil.
“The prices of oil will come down but there is no certainty over the availability of gas. There is no clarity on what has been the extent of damage for the production sites, especially in Qatar. Thus, the pricing will also remain elevated,” said the source.
Since the announcement of ceasefire on Monday, crude oil prices have fallen around 9% with Brent trading around $80 a barrel.
Since the conflict began on February 28, the prices of domestic cooking gas have been raised by Rs 89 – by Rs 60 in early March per cylinder and by Rs 29 in June. Domestic LPG cylinders now cost Rs 942 per in Delhi. Commercial LPG cylinders now costs around Rs 3,100 per cylinder, up from Rs 1,884 in March 2026. Additionally, the government has also restricted the supply of LPG for commercial purposes.
While India diversified the source of importing LPG during the West Asia crisis, with cargoes being secured from the US, Norway, Canada, Algeria, and Russia, the prices remain elevated. The US emerged as India’s largest supplier of LPG right after the crisis. The US which accounted for nearly 14% of the LPG supply for India in February, later became the major supplier accounting for 55% of the country’s imports in May 2026.
India was previously importing approximately 60% of its LPG requirements from Gulf countries such as Qatar, UAE, Saudi Arabia, and Kuwait, Minister for Petroleum and Natural Gas Hardeep Puri had mentioned.
