The ongoing conflict involving Iran, Israel and the United States has begun to impact fuel prices, with oil marketing companies in India increasing the price of domestic LPG cylinders by Rs 60 on Saturday.

According to the website of Indian Oil Corporation (IOC), the price of a 14.2-kg non-subsidised LPG cylinder, commonly used by households and beneficiaries of the Pradhan Mantri Ujjwala Yojana, now stands at Rs 913 in Delhi.

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Following the revision, LPG cylinder prices in key cities are:

  • Delhi: Rs 913
  • Mumbai: Rs 912.50
  • Kolkata: Rs 930
  • Chennai: Rs 928.50

Prices of commercial 19-kg LPG cylinders have also been listed as follows:

  • Delhi: Rs 1,883
  • Mumbai: Rs 1,835
  • Kolkata: Rs 1,990
  • Chennai: Rs 2,043.50

The price hike comes amid rising global crude oil prices driven by concerns over potential supply disruptions in the Middle East. Traffic through the strategic Strait of Hormuz, through which nearly 20 per cent of the world’s oil and gas supplies pass, has reportedly slowed significantly due to the ongoing conflict.

According to a report by CNBC, US crude oil surged 35.63 per cent this week, marking the biggest weekly gain in futures contracts since 1983. Meanwhile, Brent crude rose nearly 28 per cent, its sharpest weekly increase since April 2020.

Since crude oil is a key component in producing petrol and diesel, a sustained rise in global oil prices could eventually push up motor fuel prices in India as well.

In an interview with the Financial Times, Saad al-Kaabi, Energy Minister of Qatar, warned that if the Strait of Hormuz remains closed to tankers, global oil prices could surge to as high as USD 150 per barrel within two to three weeks.

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As of March 7, 2026, petrol prices in New Delhi remain at Rs 94.77 per litre, while diesel is priced at Rs 87.67 per litre. Both rates have remained unchanged over the past two days despite volatility in international crude oil markets.

Market analysts note that domestic fuel prices often respond with a delay to global fluctuations due to government regulations, taxes and India’s fuel pricing mechanisms. However, if crude oil continues to climb, petrol and diesel prices could also see an increase in the coming weeks.