Published On 1/5/2026
The Indian Oil Corporation, the largest state refining company in India, announced that it will raise the prices of liquefied gas used in industries and aviation fuel for foreign airlines, starting today, Friday.
The corporation added in a statement on Friday that the price of a 19-kg commercial LPG cylinder intended for industrial customers rose by 993 rupees, or 47.8%, to 3,071.5 rupees.
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The price of domestic liquefied petroleum gas, used primarily as cooking fuel, remained unchanged.
According to the corporation, aviation fuel prices for local airlines have not been adjusted.
The Indian corporation added that foreign airlines will pay fuel prices based on its price in the global market, which is not applied to Indian airlines.
The Times of India newspaper indicated that this is the second increase in jet fuel prices for foreign companies since the beginning of the Iran war.
Reducing oil refinery production
The Financial Times recently reported that oil refineries in Asia had reduced their production of petroleum derivatives, including jet fuel, as a result of the decline in the crude oil they received from the Middle East since the outbreak of the war on Iran, which led to a rise in jet fuel prices.
The war led to a decrease in the total production of oil refineries in Asia to about 70% of their production capacity during last March and this April, while they were operating at 82% to 84% of their capacity before the war, according to figures from Wood Mackenzie, a financial consulting company, reported by the Financial Times.
These increases in the prices of liquefied gas and aviation fuel in India come amid a sharp rise in global oil prices with the continued closure of the Strait of Hormuz and the US naval blockade of Iranian ports.
Prices continue to rise
Brent crude futures for July delivery rose $1.19, or 1.08%, to $111.59 a barrel on Friday, while West Texas Intermediate crude futures increased 39 cents, or 0.37%, to $105.46.
The June Brent contract recorded Thursday at $126.41 per barrel, its highest level since March 2022.
Oil prices have continued the upward trend since last February 28, when the American-Israeli war on Iran began. A ceasefire has been in effect since April 8.
In this context, analyst Giovanni Stonovo from UBS Bank told Reuters, “The path of least resistance crude oil prices remains in an upward direction as long as the flow through the Strait continues to be disrupted,” adding that oil inventories are declining rapidly due to a shortage of supply in the market.
A US official told Reuters that President Donald Trump received a briefing yesterday, Thursday, about plans to launch a series of new military strikes on Iran to force it to negotiate to end the conflict.
