Indane Gas, Bharat Gas, HP Gas Prices Hike In August 2026? How Rising Crude Oil Prices May Impact LPG Gas Cylinders?

Crude oil prices are rising at a sharper speed, reaching a six-week high on Thursday, July 23, 2027, with Brent Crude hitting above the $98 per barrel mark. Crude oil at $100 seems like a near-term reality, with renewed hostilities and fresh airstrikes between the US and Iran, which has entered into the 12th day, pushing energy costs higher and making the situation at the Strait of Hormuz futile. If crude hits 100, it could impact Indian households, as one of the most essential products, LPG gas cylinders, could get expensive in August 2026.

The liquefied petroleum gas (LPG) has a direct connection with crude oil prices. LPG cylinders is made after refining crude oil and processing natural gas. When conflict erupts in oil-rich countries, crude and natural gas become expensive, shipping becomes risky, and supply chains are constrained.

Approximately 60% of Indian households rely on LPG cylinders, and 90% of these rely on imports through the Strait of Hormuz, a pivotal chokepoint for 20% of total global oil and gas supply. Broadly, crude oil accounts for the major chunk of India’s total import bills, with 85% of the country’s oil requirement being met through imports from other countries in the Middle East and including the USA.

So every barrel of crude oil imported by India is paid for in US dollars. As global oil prices rise, India’s demand for dollars increases, putting downward pressure on the rupee. This makes imports expensive, and it means that India is paying more than earning in exports. And hence, all petroleum products will face the impact, which will be further passed onto customers.

The transportation of these crudes is majorly via Hormuz.

During March to May, the shutdown of the Strait of Hormuz by Iran in defiance of US and Israel led to a global supply crunch, forcing countries to hike petroleum product prices. India was one of them!

Between March and June 2026, 19 kg commercial prices were hiked five times, and 14.2 kg domestic LPG cylinder prices were raised twice. While the Indian government also resorted to pushing production of liquefied petroleum at domestic refineries, alongside encouraging the usage of alternatives to LPG which are PNG, induction, and kerosene.

It was only in July 2026 when oil marketing companies got a brief room to ease 19 Kg commercial LPG prices for the first time in 2026 due to the temporary ceasefire between the US and Iran in June, which had pushed crude oil prices.

But now, the concern of a price hike is back!

In July, a major relief was seen in 19 kg LPG prices, which were cut by Rs 173 to Rs 183.50 per cylinder across cities.

With effect from July 1, 2026, the 19 Kg LPG is priced at Rs 2,930 in Delhi from earlier Rs 3,113.50. Meanwhile, 19 Kg LPG is priced at Rs 2,885.50 per cylinder in Mumbai, which is down by Rs 182. In Chennai, LPG price dropped by Rs 177 to Rs 3,106 per cylinder.

On the other hand, the 14.2 Kg LPG prices are unchanged across the cities for July 2026. Accordingly, the 14.2 Kg LPG price stood at Rs 942 in Delhi, at Rs 968 in Kolkata, at Rs 941.50 in Mumbai and at Rs 957.50 in Chennai.

Crude Oil Price At 100 Soon?

On July 23rd, US WTI crude oil rose by 3% and traded near $89.50 per barrel, while Brent Crude rose by nearly 5% to trade near $98 per barrel. Both are rising for the fifth consecutive day now and have reached to six-week high.

The reason is escalation between the US and Iran for 12 days now, which brings back similar situations that were seen during March to May 2026.

“Fresh attacks near the Strait of Hormuz have revived fears of potential supply disruptions and heightened volatility in global crude markets,” said analysts at Choice Institutional Equities. In their opinion, following impact could be likely ahead:

“Several vessels transiting the Red Sea reportedly made U-turns near the Bab el-Mandeb Strait following fresh warnings issued by the Houthis, highlighting rising shipping risks and the possibility of further trade disruptions,” they added.

Could crude hit the $100 mark soon? As per The Wall Street Journal, which cited Phillip Nova analyst Priyanka Sachdeva, Brent crude oil could hit $100 if the tensions continue.

She explained to WSJ that while the market is paying for logistics risk rather than lost barrels now, that distinction could narrow quickly if attacks continue.

Adding, the analyst notes that the biggest risk for energy markets would be prolonged simultaneous disruption at both the Bab el-Mandeb and the Strait of Hormuz. At that stage, the market would have very limited flexibility to reroute cargoes, and shipping disruption could quickly evolve into a broader inflationary problem.

On the other hand, Choice analysts have still maintained their FY27 Brent crude target at $82 per barrel, while noting upside risk should current disruption persist beyond four weeks.

If crude oil continues to rise, impact will be seen in LPG prices, most likely from the month of August.

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