India Increases Aviation Fuel And Commercial Gas Prices Following Middle East Conflict Supply Disruptions

Indian fuel retailers raise commercial gas and aviation fuel prices by over 8% as Middle East conflict disrupts global supply through the Strait of Hormuz.

By: AXL Media

Published: Apr 1, 2026, 10:15 AM EDT

Source: Information for this report was sourced from The Straits Times

The Immediate Impact Of Regional Warfare On Energy Costs

Fuel retailers across India have enacted substantial price increases for aviation turbine fuel and commercial liquefied petroleum gas in direct response to the escalating conflict involving the United States, Israel, and Iran. According to data from the Indian Oil Corporation, jet fuel prices rose by 8.58 percent to 104,927 rupees per kilolitre, while commercial LPG cylinders used by the hospitality and industrial sectors saw a 10.38 percent jump. These adjustments reflect the volatility of a global market currently strained by military operations in the Middle East, which have historically served as the primary corridor for India’s energy imports.

Supply Chain Blockades Within The Strait Of Hormuz

The Ministry of Petroleum has identified the maritime bottleneck in the Strait of Hormuz as a primary driver for the current price surge, noting that approximately 20 percent to 30 percent of global LPG supplies are currently obstructed. This logistical paralysis has contributed to a 44 percent spike in the Saudi Contract Price, which serves as the regional benchmark for gas procurement. Because India relies on the Middle East for roughly 90 percent of its LPG imports, the closure or disruption of these shipping lanes creates immediate upward pressure on domestic retail rates for commercial users.

Government Intervention To Stabilize Domestic Travel Expenses

In an effort to mitigate the shock to the aviation industry and prevent a total collapse in domestic travel demand, the government has opted for a staggered price implementation. The Ministry of Petroleum, working in tandem with the Ministry of Civil Aviation, stated on social media that only a partial increase of 25 percent has been passed through to airlines. This strategic delay is intended to insulate travelers from the full weight of international price fluctuations, even as the global cost of aviation turbine fuel continues to climb amid the heightened geopolitical tensions.