The sharp increase reflects a sustained rise in crude oil prices, driven by the effective closure of the Strait of Hormuz, a critical oil transit chokepoint through which roughly a fifth of global oil supply typically flows. Tankers stranded in the region have curtailed deliveries, constraining supply and pushing benchmark oil prices higher.

Market analysts say the price trajectory briefly softened in mid-April amid expectations of a potential ceasefire. “There was optimism that this could mark the beginning of the end of the conflict,” said Rob Smith, director of global fuel retail at S&P Global Energy, noting that crude and gasoline prices temporarily declined before reversing course as hostilities persisted.

Crude oil accounts for the largest share of gasoline costs in the United States, representing about 51 percent of pump prices in 2025, according to the US Energy Information Administration. Taxes contribute roughly 17 percent, while refining, distribution, and marketing costs make up the remainder.

The International Energy Agency has described the disruption linked to the Strait of Hormuz as the largest supply shock in oil market history, with prices reaching as high as $112 per barrel in early April. Analysts note that gasoline prices tend to track crude movements closely, with minimal lag.

Additional upward pressure followed US actions in April to block Iranian oil exports, a move analysts say removed a key supply source from global markets. “Iran had been moving an unusually high amount of oil to global markets, which helped moderate prices,” said Jim Krane, an energy research fellow at Rice University’s Baker Institute, adding that the restrictions intensified price pressures.

Energy markets have remained highly sensitive to geopolitical developments, with fluctuations tied to reports of attacks in the Arabian Gulf or shifts in diplomatic efforts. “The oil market is exquisitely sensitive to what’s coming out of the White House,” said Bob Kleinberg, a research scholar at Columbia University’s Center on Global Energy Policy.

The pace of price increases has echoed previous geopolitical shocks, including a 48-cent weekly rise at the outset of the Iran conflict. However, analysts caution that no near-term relief is likely, as prolonged constraints in the Strait of Hormuz are expected to sustain upward pressure on prices.

Even in the event of a durable resolution, market participants say a return to pre-war pricing levels could take months due to lingering risk premiums associated with shipping through the region and heightened insurance costs for oil transport.

The company said the price of a 19-kg commercial LPG cylinder used by industrial consumers was increased by 993 rupees, or 47.8%, to 3,071.5 rupees from previous levels.Aviation turbine fuel prices for international airlines were also raised by $76.55 per kilolitre to $1,511.86 per kilolitre, up from $1,435.31, according to a company statement.

Prices of household LPG, primarily used as cooking fuel, were left unchanged, while jet fuel rates for domestic airlines were also not revised.The selective increase reflects the government’s continued effort to shield households and domestic carriers from sharp energy inflation while allowing market-linked pricing for industrial and international commercial users.

The revisions come as global oil prices have climbed above $100 per barrel after the closure of the Strait of Hormuz, a critical global shipping route for crude exports, amid the ongoing Iran war and heightened military tensions in the Gulf.

The disruption has tightened supply expectations across global energy markets and increased input costs for refiners and fuel distributors across Asia, particularly for countries such as India that depend heavily on imported crude.

India imports more than 80% of its crude oil needs, making domestic fuel pricing highly sensitive to geopolitical shocks in major producing regions such as West Asia.

The increase in commercial LPG prices is expected to affect hotels, restaurants and small industrial users, while higher aviation turbine fuel costs for foreign carriers could raise operational expenses for international flights using Indian refueling hubs.

Indian Oil did not indicate whether further revisions would follow if crude prices remain elevated.