Higher CNG, Cooking Gas Prices? Fresh Tensions In Strait Of Hormuz May Hit Your Wallet Soon

Last Updated:July 08, 2026, 15:17 IST

The uncertainty has been compounded by Washington’s decision to revoke a temporary sanctions waiver that had allowed limited Iranian crude oil production, sales and exports

Fresh attacks on commercial vessels in the Strait of Hormuz, including a Qatari liquefied natural gas (LNG) tanker bound for India, have once again raised concerns over whether Indian consumers could soon face higher prices for compressed natural gas (CNG), piped cooking gas (PNG) and industrial gas.

The attacks come as the United States and Iran have resumed military hostilities, with US President Donald Trump declaring the ceasefire with Tehran “over" after fresh exchanges of strikes. Washington has also revoked a sanctions waiver that had allowed limited Iranian oil exports, further escalating tensions in one of the world’s most important energy corridors.

Why Does A Tanker Attack Matter To India?

The Strait of Hormuz is the world’s most critical energy chokepoint. Nearly a fifth of global oil trade and a significant share of global LNG exports pass through the narrow waterway connecting the Persian Gulf with the Arabian Sea.

For India, the stakes are particularly high. India imports roughly half of its natural gas requirements as LNG, with Qatar remaining its single largest supplier. A substantial portion of these cargoes transit through the Strait of Hormuz before reaching Indian terminals such as Dahej in Gujarat.

On Wednesday, a Qatari LNG carrier headed for Dahej, carrying four Indian crew members, was reportedly hit in a suspected drone attack near Hormuz. At least four oil and gas tankers have since turned back amid worsening security conditions.

Oil Prices Have Already Reacted

Energy markets responded immediately. Brent crude climbed as much as 6 per cent to around $78 a barrel, while US benchmark West Texas Intermediate also rose sharply as traders priced in the possibility of prolonged supply disruptions.

Investors fear that renewed attacks on shipping could slow energy flows through Hormuz even if the strait remains technically open.

Security experts quoted by The Wall Street Journal say Iran is signalling that it will oppose alternative shipping corridors proposed by Gulf states and may continue targeting vessels that bypass its preferred arrangements.

Will Indian Consumers Pay More?

Not immediately, but the risks have increased.

Unlike petrol and diesel, CNG and PNG prices are influenced not only by domestic gas production but also by the cost of imported LNG.

If LNG cargoes become more expensive because of higher freight rates, insurance costs or supply shortages, city gas distributors may eventually face higher procurement costs. That could affect CNG used in vehicles, PNG supplied to households, and gas supplied to industries and commercial users.

The uncertainty has been compounded by Washington’s decision to revoke a temporary sanctions waiver that had allowed limited Iranian crude oil production, sales and exports under last month’s US-Iran memorandum of understanding. The US Treasury cancelled the licence before its scheduled August 21 expiry, with American officials saying the move was a response to Iran’s attacks on commercial shipping in the Strait of Hormuz. Washington has maintained that any sanctions relief will now depend on Tehran’s future conduct, adding another layer of uncertainty to global energy markets.

Why Qatar Matters So Much

Qatar has long been India’s largest LNG supplier under long-term contracts.

While India has diversified purchases in recent years by importing cargoes from the United States, Australia, Russia, Oman and Africa, Qatar remains central to the country’s gas security.

If shipping from Qatar is disrupted, Indian buyers may have to compete for spot LNG cargoes from other regions, where prices are usually significantly higher.

Put simply, a single attack is unlikely to trigger an immediate hike in CNG or PNG prices. But if the conflict escalates, shipping through Hormuz remains disrupted, or global LNG prices stay elevated for an extended period, Indian consumers could eventually see higher fuel bills. Long-term LNG contracts with Qatar may cushion the initial impact, but they cannot fully insulate India if the crisis becomes prolonged.

About the Author

Apoorva Misra

Apoorva Misra is a News Editor at News18.com with a keen interest in politics and current affairs. She loves uncovering fresh angles and telling stories through long-form features and explainers. Foll...Read More

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