Indian Oil Raises LPG and Jet Fuel Prices

Indian Oil Co. has raised prices for liquefied petroleum gas (LPG) and jet fuel. For industrial users, LPG prices increased by 47.8% due to supply shortages caused by the war in the Middle East, particularly the blockage at the Strait of Hormuz, which handles 90% of India’s LPG imports. This disruption has led to soaring prices and reduced demand. Meanwhile, foreign airlines buying Indian jet fuel now pay $76.55 more per kilolitre, bringing the total to $1,511.86 per kilolitre. Some 60% of Indian households rely on LPG for cooking, and the crisis has caused demand destruction. The government has responded by redirecting LPG supplies from industries to households and promoting the expansion of city pipeline gas networks to replace LPG cylinders. Local refiners are also being encouraged to boost LPG production, though this remains loss-making due to high international oil prices. India’s LPG production has increased by 25% since February 28th, reaching 46,000 tons per day, with further growth expected after Nayara Energy’s refinery restarts. Meanwhile, the global jet fuel crisis has led to record low shipments of 2.3 million tons, causing flight cancellations and bidding wars in the airline industry, particularly in Europe and the UK.