Fuel prices for households and businesses in India saw selective revisions at the start of September 2026. While domestic LPG cylinders maintained their rates, commercial LPG, Compressed Natural Gas (CNG), and Piped Natural Gas (PNG) recorded increases across major cities like Delhi and Mumbai.
Commercial LPG Rates See Hike
Indian Oil Corporation Limited (IOCL) announced a hike of ₹9.50 to ₹11.50 per cylinder for 19-kg commercial LPG cylinders. Following this revision, a 19-kg LPG cylinder now costs ₹2,747.50 in Delhi. Other cities also saw similar adjustments, impacting businesses relying on these larger cylinders for their operations.
CNG and PNG Prices Climb
Consumers of CNG and PNG also face higher costs. Mahanagar Gas Ltd (MGL) increased CNG prices in Mumbai by ₹2 per kilogram, setting the new rate at ₹88 per kg. Simultaneously, MGL hiked the price of domestic PNG by ₹1 per standard cubic metre (SCM) in the Mumbai region, effective September 1.
In Delhi, Indraprastha Gas Ltd (IGL) raised the price of CNG by ₹3.89 per kg, bringing it to ₹86.98 per kg from the previous ₹83.09 per kg. This increase was effective from August 29.
Reasons for the Price Adjustments
The recent surge in international LNG prices has been cited as a primary factor behind these revisions. Geopolitical tensions, particularly the renewed West Asia crisis and disruptions to gas cargo movements through the critical Strait of Hormuz, have significantly impacted global supply chains and energy costs.
Government Strategy and Supply Diversification
In response to volatile international markets and to reduce dependence on imported cooking gas, the Indian government is actively seeking to secure supplies from alternative sources and strengthen domestic availability. An incentive scheme for city gas distributors, approved from September 1, 2026, aims to boost domestic PNG connections, encouraging a shift from LPG.
India is also diversifying its import sources. Maritime intelligence firm Kpler reported that India imported approximately 0.62 million tonnes of LPG from the United States in August, following 0.89 million tonnes in July 2026. These figures represent over 73 percent of the country’s total LPG imports during those months, indicating a strategic pivot away from traditional Gulf suppliers due to disruptions in the Strait of Hormuz.
Impact on Consumers
For most households, monthly cooking gas budgets remain stable as domestic LPG prices have not changed. However, commercial users and fleets operating on CNG and PNG will need to factor in these latest city-specific revisions when managing their operational expenses.