Commercial LPG Prices Surge in India Amid Global Energy Crunch

The price increase extends beyond the national capital, with Kolkata recording a rise of Rs 218 and Chennai witnessing an increase of Rs 203. The surge is driven by a 44% rise in Saudi LPG contract prices from $542 to $780 per metric tonne, a direct consequence of West Asia tensions blocking supplies in the Strait of Hormuz. The disruption in this critical supply route has intensified volatility in global energy markets, directly impacting domestic pricing structures.

This marks the fifth increase this year, totaling around Rs 525, placing sustained pressure on businesses such as eateries and small factories that rely heavily on commercial LPG. The repeated hikes are steadily escalating operational costs, forcing enterprises to navigate tightening margins and rising input expenses.

In contrast, household cylinders remain steady at Rs 913 in Delhi, supported by subsidies that continue to shield domestic consumers from immediate price shocks. However, the diver

gence between commercial and household pricing underscores the broader economic impact on sectors not covered by such relief measures.

The hike coincides with aviation fuel prices soaring over 115%, further amplifying cost pressures on airlines and contributing to rising everyday expenses. The simultaneous escalation across fuel categories signals a widening ripple effect across the economy, with implications for inflation, supply chains, and consumer pricing.

The continued surge in LPG and aviation fuel prices highlights the vulnerability of India’s energy-dependent sectors to global disruptions, reinforcing concerns over sustained cost escalation and its broader economic consequences.