Iran-Israel War: Why a conflict 3,000 km away may inflate your kitchen bill, airfares and even paint costs

Rising geopolitical tensions and the ongoing military conflict in West Asia are starting to impact everyday expenses in India, from cooking fuel and kitchen appliances to airline tickets and even wall paints.

The surge in global energy prices triggered by the conflict has pushed up the cost of cooking gas, aviation fuel and several industrial inputs linked to crude oil. As a result, higher costs are gradually being felt by both households and businesses across the country.

LPG prices rise for households and businesses

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Oil marketing companies increased the price of Liquefied Petroleum Gas (LPG) on March 7, making cooking fuel more expensive for both domestic consumers and commercial establishments.

Domestic LPG cylinders used by households have become Rs 60 costlier, while the price of a 19-kg commercial cylinder has increased by Rs 114.5. In Delhi, the price of a commercial cylinder has now reached Rs 1,883.

The latest revision follows another increase earlier in March when commercial LPG cylinder prices were raised by Rs 28. Officials in the energy sector say the increase is linked to volatility in global energy markets following tensions in West Asia.

Government assures energy supply

Union Petroleum and Natural Gas Minister Hardeep Singh Puri said domestic consumers in India will not face any energy shortage despite the ongoing crisis.

He said supplies of CNG and piped natural gas for households remain secure, while industries continue to receive most of their fuel requirements.

“In today's informal interaction with members of the media fraternity, we discussed that India's energy imports are continuing to flow in from different sources and routes. We have taken steps to ensure that 100 per cent supply of CNG & PNG to domestic consumers is ensured and other industries continue to get 70-80 per cent of their supplies, despite the war situation,” Puri said in a post on X.

Government invokes emergency measures

The government has invoked provisions under the Essential Commodities Act to safeguard the domestic energy market and manage supply constraints.

Under the new arrangement, households will continue to receive full supplies of piped natural gas and CNG for vehicles. Other sectors will receive fuel based on capped allocations linked to their average consumption over the past six months.

India typically sources a significant portion of its natural gas through the Strait of Hormuz. Officials said the government is exploring alternative routes and suppliers to maintain energy security amid the conflict.

Diversion of gas to priority sectors

In a gazette notification, the oil ministry ordered diversion of gas from non-priority sectors to ensure uninterrupted supply for domestic cooking gas, piped cooking gas and CNG. The government has also instructed oil companies to increase LPG production from around 30 per cent to about 70 per cent in an effort to stabilise supply in the domestic market.

Officials said the measures are aimed at ensuring that households and essential services continue to receive adequate fuel.

Restaurants face operational challenges

Restaurants, hotels and other food businesses that rely heavily on LPG are expected to face higher operating costs following the price increase. Industry operators say repeated increases in cooking fuel costs could eventually lead to higher food prices for consumers.

In some places, supply pressures are already being reported. The Mumbai Press Club recently informed members that its kitchen is facing operational constraints due to cooking gas shortages and only limited food items will be available until the situation improves.

Restaurants change menus amid gas shortage

Reports suggest that several restaurants in metro cities have started modifying their menus due to reduced LPG availability. Some outlets have temporarily stopped preparing gas-intensive dishes such as fried snacks, biryani and slow-cooked curries that require longer cooking time.

Items such as samosa, pakoda and fries have been reduced in some outlets, while a few restaurants have simplified their menus and are offering limited thali meals.

Some establishments have also removed items like idlis and dosas from their menu temporarily to reduce gas consumption. Instead, many outlets are focusing on dishes that require less gas, including sandwiches, rolls and salads.

Demand rises for electric cooking appliances

Higher LPG prices and concerns about supply availability have led to a sharp increase in demand for electric cooking appliances. Online and offline retailers are reporting increased enquiries and purchases of induction cooktops and other electric appliances.

An Amazon India spokesperson said demand for induction cooktops has surged significantly in the past 24 hours. “In the last 24 hrs, we have seen demand for induction cooktops surge close to 20X on Amazon compared to a regular day,” the spokesperson said.

Bookings for induction cooktops increased nearly twenty times within a day, while sales on the platform have risen about 15 per cent. Other platforms, such as Flipkart and retail chains like Vijay Sales, are also witnessing increased customer enquiries.

Quick commerce platforms such as Blinkit and Swiggy Instamart have reported that several warehouses are running out of stock of induction cooktops due to the sudden spike in demand. Apart from induction cooktops, demand has also risen for electric rice cookers, microwave ovens and OTG appliances.

Air travel set to become costlier

The impact of rising energy prices is also being felt in the aviation sector. Air India has announced a phased increase in fuel surcharges on domestic and international flights due to a sharp rise in aviation turbine fuel prices.

Aviation turbine fuel accounts for nearly 40 per cent of an airline’s operating costs and has seen significant price increases since early March. Under the first phase, beginning March 12, a fuel surcharge of Rs 399 will be introduced on domestic routes and flights to SAARC destinations where no surcharge was previously applicable.

Flights to West Asia will attract a surcharge of USD 10, while flights to Southeast Asia will see the surcharge increase to USD 60 from USD 40. For routes to Africa, the surcharge will rise from USD 60 to USD 90.

More hikes planned for long-haul routes

In the second phase, starting March 18, surcharges on long-haul routes will increase further. Flights to Europe will see the surcharge rise from USD 100 to USD 125, while routes to North America and Australia will see the surcharge increase from USD 150 to USD 200.

The airline said tickets issued before the effective dates will not attract the revised surcharge unless passengers change their travel date or itinerary. The company said the surcharge increase is necessary to offset rising fuel costs.

Paint prices may also increase

Higher crude oil prices are also affecting industries beyond energy and aviation. A report by Systematix Research said paint prices in India could increase by 2 to 5 per cent in April if crude oil prices remain at current elevated levels.

Dealers expect paint companies to consider price hikes if crude prices continue to remain high. However, companies have not announced any increases so far. The report said companies are likely to wait through March to assess whether crude prices stabilise before making pricing decisions.

Paint manufacturers use several crude-based derivatives as raw materials, making the industry sensitive to movements in global oil prices.

India depends heavily on Middle East LNG

India imports liquefied natural gas from several countries, with Qatar remaining the largest supplier. According to data from the Ministry of Commerce, Qatar accounts for 47.28 per cent of India’s LNG imports.

Other key suppliers include the United Arab Emirates with 13.47 per cent, the United States with 10.51 per cent, Oman with 7.67 per cent, Angola with 7.29 per cent and Nigeria with 6.62 per cent.

If only Middle East suppliers are considered — Qatar, the UAE and Oman — their combined share in India’s LNG imports comes to about 68.42 per cent. This means more than two-thirds of India’s LNG supply is sourced from the Middle East, making the country sensitive to disruptions in the region.

Experts say if tensions continue and global energy prices remain high, the impact could spread further across multiple sectors of the economy.