India’s coking gas price increase lower than global average hike:US Iran’s share rise in India’s LPG import basket during Iran war

India sharply diversified its liquefied petroleum gas (LPG) sourcing during the West Asia conflict, increasing imports from the US, Iran and several other countries to reduce dependence on the Gulf region, while state-owned fuel retailers absorbed much of the surge in international prices to shield households. West Asian countries account for 90% of India’s LPG imports before Iran war Before the conflict, roughly 90% of India’s LPG imports came from West Asian suppliers, leaving the country heavily exposed to regional disruptions. US’ share in India’s total LPG imports shoots to 33% By April 2026, the United States accounted for nearly one-third of India’s LPG imports, up from just 8% in February, said news agency PTI citing a Crisil report. Iran re-enters India’s import basket in April Iran also re-entered India’s import basket, accounting for around 6 per cent of April imports, while supplies were sourced from countries like Argentina, Chile, France and the Netherlands. The diversification helped maintain supplies during the conflict, but came at the cost of longer supply chains and higher freight expenses. Cooking gas price hike hits demand The disruption nevertheless weighed heavily on demand. LPG consumption fell to 2.47 million tonnes in April from 3.2 million tonnes in February as tighter availability and rising prices curbed usage. Demand hit harder in industries than households Commercial and industrial users bore the brunt of the decline, with consumption dropping more sharply than household demand as market-linked customers responded quickly to higher prices and supply constraints. What determines India’s cooking gas prices? Crisil said the conflict also triggered a sharp increase in global LPG prices. The Saudi Aramco Contract Price, the benchmark for Indian imports, rose 46 per cent between February and June as markets priced in supply risks and elevated freight costs. However, the increase was only partially passed on to domestic consumers.
The price of a 14.2-kg household LPG cylinder in Delhi rose about 10 per cent between February and June, while the price of a 19-kg commercial cylinder surged more than 79 per cent. Oil companies face a loss of ₹651 on the sale of each 14.2 kg cylinder The limited increase in household cooking gas prices led to a sharp rise in under-recoveries for oil marketing companies as procurement costs outpaced retail prices, it said, adding that the under-recoveries on domestic LPG cylinders in Delhi rose to Rs 651 per cylinder in May, while cumulative losses borne by fuel retailers during March-May were estimated at nearly Rs 22,000 crore. Hormuz opening may lead global LPG price fall The easing of tensions in West Asia and the potential reopening of key trade routes are expected to reduce immediate supply concerns and moderate global LPG prices.