Fuel consumers are facing renewed pressure as Compressed Natural Gas (CNG) prices saw another significant hike on May 26, 2026. This latest increase of ₹2 per kilogram brings the total rise since May 15 to ₹5 per kg, marking the fourth such hike in less than two weeks. In Delhi, CNG now retails at ₹83.09 per kg.
Rising CNG Prices Across India
The recent surge in CNG costs has impacted several major cities. Following the May 26 increase, CNG prices in other key locations are:
- Bengaluru: ₹90 per kg
- Hyderabad: ₹97 per kg
- Mumbai: ₹81 per kg
- Chennai: ₹91.50 per kg
- Kolkata: ₹93.50 per kg
Nearby regions also experienced price adjustments, with Gurugram now at ₹86.12 per kg, and both Ghaziabad and Noida seeing rates of ₹89.70 per kg.
LPG and PNG Rates Updated
Alongside CNG, the prices for Liquefied Petroleum Gas (LPG) and Piped Natural Gas (PNG) have also been updated:
14.2 kg Domestic LPG Cylinder Prices (May 26)
- Delhi: ₹913
- Bengaluru: ₹915.50
- Hyderabad: ₹965
- Mumbai: ₹912.50
- Chennai: ₹928.50
- Kolkata: ₹939
19 kg Commercial LPG Cylinder Prices (May 26)
- Delhi: ₹3,071.50
- Bengaluru: ₹3,152
- Hyderabad: ₹3,315
- Mumbai: ₹3,024
- Chennai: ₹3,237
- Kolkata: ₹3,202
PNG Prices per Standard Cubic Meter (SCM) (May 26)
- Delhi: ₹47.90
- Bengaluru: ₹52
- Hyderabad: ₹51
- Mumbai: ₹50
- Chennai: ₹50
- Kolkata: ₹50
Factors Behind the Fuel Price Hikes
These escalating fuel prices are attributed to several interconnected factors, primarily rising global energy costs and the ongoing financial pressures faced by oil companies. Industry sources indicate that the price adjustments are designed to alleviate margin strains on these companies, though they are expected to contribute to inflationary trends.
A significant geopolitical event contributing to the surge in energy prices was the US-Israel attack on Iran on February 28 and Tehran's subsequent retaliation, which led to the effective closure of the Strait of Hormuz. This critical shipping lane is vital for India, which sourced over 40 percent of its crude oil imports and approximately 90 percent of its LPG from the Middle East via this strait before the conflict.
Government Response and Parliamentary Scrutiny
In response to the energy crisis, Prime Minister Narendra Modi has urged ministers and officials to prioritize the exploration of alternative energy sources, including biogas as a substitute for LPG cooking gas. This directive came during a Council of Ministers meeting where the Prime Minister advocated moving beyond conventional energy solutions.
Meanwhile, a parliamentary panel raised concerns with Oil Ministry officials regarding reports of long queues and fuel rationing at petrol pumps in some regions. Officials informed the Parliamentary Standing Committee on Transport, Tourism and Culture that India currently holds crude oil stocks sufficient for 78 days. They also reported that 13 Indian ships remain stranded in West Asia due to the Strait of Hormuz closure. While the government is working to prevent shortages, uncertainty persists regarding the conflict's resolution.
Opposition members on the panel criticized the Oil Ministry for not providing official data on shortages and questioned why proactive measures were not taken earlier despite clear signs of the West Asia conflict's potential impact on fuel and fertilizer prices for the common populace.