India Raises LPG Prices as Hormuz Crisis Chokes Flows

Article content(Bloomberg) — India raised prices of its most widely used cooking gas for the first time in a year, as the Iran war disrupted Middle East energy flows and sent global fuel costs higher.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentIndian Oil Corp., the nation’s largest refiner, increased the price of a 14.2-kilogram liquefied petroleum gas cylinder in New Delhi by 7% to 913 rupees ($9.95), according to its website. Other state-run retailers — Bharat Petroleum Corp. and Hindustan Petroleum Corp. — raised rates in tandem, marking the first hike for household consumers since April.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentIndia, the world’s third-largest LPG consumer, sources more than 90% of its imports from the Middle East. Much of that supply transits the Strait of Hormuz, now effectively closed to traffic, squeezing shipments of a fuel widely used for cooking across the country.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe price increase will affect more than two-thirds of India’s roughly 333 million LPG-using households, with the rest being subsidized. While urban consumers also have access to piped natural gas, higher cooking gas prices are likely to add to inflation by lifting the fuel component of the consumer price index.Article contentHousehold LPG prices are typically adjusted only once or twice a year, reflecting their political sensitivity. Women make up nearly half of India’s electorate, and cooking gas costs are closely watched by political parties.Article contentPrices of commercial LPG cylinders used by hotels and restaurants were raised 6.5% to 1,883 rupees, according to Indian Oil. Commercial rates, which are revised monthly, were last increased 1.6% on March 1.Article contentAn oil ministry spokesperson didn’t immediately respond to an email sent outside office hours, requesting for comment on the price increase.Article contentIn order to boost stockpiles of LPG, the government has used emergency powers to push refiners to maximize production and prioritize household users, and curtail supplies to petrochemical plants.Article contentTrending South Bow confirms open season for new pipeline to the U.S. using legacy Keystone XL permits Oil & Gas Posthaste: Canadians are paying more than lip service to Buy Canada — and now the numbers prove it News Bank of Canada governor warns of growing risks to financial stability Economy This TSX stock fought its way back from the AI software rout and may have 'strong growth prospects' Investor These eight charts show 'rupture' with Canada under Trump's tariffs Economy Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. South Bow confirms open season for new pipeline to the U.S. using legacy Keystone XL permits Oil & Gas Posthaste: Canadians are paying more than lip service to Buy Canada — and now the numbers prove it News Bank of Canada governor warns of growing risks to financial stability Economy This TSX stock fought its way back from the AI software rout and may have 'strong growth prospects' Investor These eight charts show 'rupture' with Canada under Trump's tariffs Economy