India Raises LPG, Kerosene Prices by Up to 48%

India increased the prices of liquefied petroleum gas (LPG) for commercial use and kerosene for international companies, citing disruptions in energy supply caused by the ongoing conflict in the Middle East, according to the state-run oil marketing company.

Indian Oil Corporation Limited announced Friday a revision in the pricing of commercial LPG cylinders and select kerosene categories, marking a sharp upward adjustment in domestic energy costs.

The company, India’s largest fuel retailer, said the price of a 19-kilogram commercial LPG cylinder has been raised by 993 rupees (about $10.50), an increase of nearly 48% in New Delhi. Prices vary across cities due to local taxation structures.

The steep hike is expected to hit businesses such as restaurants and food service providers, many of which have already scaled back operations since the escalation of the Middle East conflict began affecting global energy flows.

The company also raised the price of kerosene used for international aviation services, with reports indicating an increase of about 5% in the capital.

India, which relies heavily on imported energy, sources roughly 60% of its LPG needs from abroad, making it particularly vulnerable to external supply shocks. The disruptions in Middle Eastern shipments have prompted New Delhi to prioritize securing stable fuel supplies for households and essential sectors, creating operational challenges for industries including hospitality, manufacturing, and power generation.