With tensions escalating in the Middle East, the effects could soon be felt in your kitchen. Experts warn that LPG cylinder prices in India may rise in the coming weeks due to the ongoing conflict between Iran and Israel.
The situation is critical because nearly two out of every three LPG cylinders used in India are imported from West Asia — making our supply chain highly sensitive to disruptions in this region.
Why Are LPG Prices Under Threat?
According to media reports, recent US strikes on Iran’s nuclear facilities have increased concerns about potential disruptions to oil and gas supplies from the Gulf — the world’s largest energy-producing region.
In the past decade, LPG consumption in India has more than doubled — now reaching over 33 crore households, thanks to various government schemes promoting LPG adoption. However, this also means India is now 66% dependent on LPG imports, and 95% of these imports come from just three West Asian nations: Saudi Arabia, UAE, and Qatar.
Limited Domestic Stock — Only 16 Days of Supply
According to the Ministry of Petroleum, India currently has LPG storage equivalent to just 16 days of consumption — spread across import terminals, refineries, and bottling plants.
If tensions in the Middle East disrupt shipping routes or lead to delays, India could face an LPG shortage and a sharp spike in prices.
Why Petrol and Diesel Are Less Impacted
Interestingly, similar risks don’t extend to petrol and diesel for two reasons:
India is a net exporter of petrol and diesel — exporting 40% of its petrol and 30% of diesel production. If needed, this supply can be diverted back to the domestic market.
Stronger reserves: India has 25 days of crude oil stocks, held in refineries, pipelines, ships, and the National Strategic Petroleum Reserve (SPR) — giving a larger buffer compared to LPG.
Additionally, Indian refiners have avoided panic buying, confident that alternative crude sources remain available — helping stabilize domestic fuel prices despite global fluctuations.
No Need to Panic, But Stay Cautious
An industry executive told reporters:
“Even if we place orders today, delivery will only arrive next month. Our capacity to store extra LPG is limited, so panic buying makes little sense and could trigger artificial shortages.”
The advice: stay calm, avoid panic purchases, but remain aware of potential LPG price increases in the coming weeks if the geopolitical situation deteriorates further.
What About Petrol and Diesel Prices?
Despite the tension, petrol and diesel prices in India are expected to remain stable. State-run oil companies have maintained pump prices for the past three years — a policy likely to continue, even if global oil prices see temporary spikes.
While refiner margins may face short-term pressure, retail fuel prices are expected to stay insulated — underscoring the government’s intent to maintain price stability for domestic consumers.
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- My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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