Indian Oil hikes LPG for industry and raises jet fuel cost for foreign airlines

Indian Oil Corporation has increased the price of liquefied petroleum gas (LPG) for industrial consumers and raised jet fuel prices for international carriers, while keeping domestic LPG rates unchanged for households.

For industrial users, LPG prices have been raised sharply by 47.8%, reflecting tight supply conditions linked to the ongoing Middle East conflict. At the same time, foreign airlines purchasing jet fuel in India will now pay an additional $76.55 per kilolitre, taking the total price to $1,511.86 per kilolitre.

Household consumers have been shielded from price hikes, even though nearly 60% of Indian homes depend on LPG for cooking. The impact of supply disruptions has been significant, especially as around 90% of India’s LPG imports pass through the Strait of Hormuz, where shipping has been heavily affected.

To manage the situation, the government has redirected LPG supplies from industrial segments toward residential use to ensure availability of cooking fuel. Authorities are also encouraging expansion of city gas pipeline networks to reduce reliance on LPG cylinders.

Domestic production has been ramped up despite current losses, with output rising by 25% since late February to around 46,000 tons per day. Production is expected to increase further to about 50,000 tons per day once a major refinery resumes operations after maintenance.

The aviation fuel market is also under pressure, with global jet fuel supply dropping significantly. This has led to increased competition among airlines for available volumes, with some regions experiencing supply shortages and rising costs.

Overall, the pricing adjustments highlight the strain on energy supply chains and the steps being taken to prioritize essential consumption while managing limited resources.

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