The price of domestic LPG cylinders was hiked by Rs 60 on March 7, 2026, amid rising global energy costs triggered by the ongoing US-Israel military conflict with Iran. The hike has raised fresh concerns among households already worried about inflation.
At the same time, global crude oil prices have surged sharply. Brent crude, the international oil benchmark, closed at USD 77.66 per barrel — a six-month high — rising 6.57% in a single day. US crude futures rose by 8.6% to USD 72.79, up from around USD 67 just days earlier. The main trigger is the disruption of the Strait of Hormuz, a critical global oil transit route, following the military strikes on Iran.
India imports nearly 88% of its crude oil requirement, making it extremely sensitive to global price movements. Oil marketing companies (OMCs) such as Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum are carefully monitoring the situation. However, petrol and diesel prices at fuel stations have remained unchanged since April 2022. In New Delhi, petrol is being sold at Rs 94.77 per litre and diesel at Rs 87.67 per litre. In Mumbai, petrol is priced at Rs 103.49 per litre.
Experts have warned that if the Iran conflict continues and global crude stays elevated, OMCs may eventually be forced to revise petrol and diesel prices upward. The government is currently following a careful pricing policy that allows oil companies to absorb losses during high price periods, protecting consumers in the short term.
