India's state-run refiners raised domestic cooking gas prices for the first time in nearly a year, hiking the cost of a 14.2-kilogram LPG cylinder in New Delhi by 7% to 913 rupees ($9.95). The move affects approximately 222 million households as the Strait of Hormuz crisis disrupts Middle Eastern energy flows that supply over 90% of India's LPG imports.

Bharat Petroleum and Hindustan Petroleum implemented identical increases, marking the first upward revision since April 2025. The government has mandated refiners prioritize household users over petrochemical plants as supply-chain risks remain high. While two-thirds of LPG users face higher prices, the remaining consumers continue receiving government subsidies.

The politically sensitive price hike comes despite LPG pricing being a flashpoint in Indian politics, where women voters have historically influenced government decisions to keep cooking gas affordable. Commercial rates also rose 6.5% to 1,883 rupees for hotel and restaurant use. Investors now watch whether the government will increase subsidies to shield vulnerable households or allow further market-linked increases as inflationary pressures mount.