How Global Fuel Turbulence Impacts Indian Cooking Gas Prices

The recent escalation of tensions between the United States and Iran has once again highlighted the fragility of the global energy supply chain. About 90 percent of India’s LPG imports pass through the strategically vital Strait of Hormuz, and a temporary blockage of this route in February 2026 contributed to a sharp rise in international LPG prices. Minister Suresh Gopi noted that these external shocks directly affect the retail price of cooking gas in India. Nevertheless, the government’s targeted subsidy framework and compensation to oil marketing companies aim to keep the final cost affordable for eligible consumers, especially under schemes like the Pradhan Mantri Ujjwala Yojana.