From June 1, 2026, India is experiencing a fresh surge in fuel costs, primarily driven by a significant hike in commercial LPG cylinder prices. This marks the second increase since May 1 for commercial LPG, adding to the financial burden on businesses nationwide.
Commercial LPG Rates See Notable Increase
In Delhi, the price of a 19 kg commercial LPG cylinder has risen by Rs 42, bringing its new cost to Rs 3,113.5. Kolkata saw an even steeper increase of Rs 53.5, with the cylinder now priced at Rs 3,255.5. The 5 kg Free Trade LPG cylinder in Delhi also became more expensive, increasing by Rs 11 to Rs 821.5. However, domestic LPG cylinders (14.2 kg) used by households remain unchanged at this time.
- Delhi: ₹3,113.50 (19kg Commercial), ₹913 (14.2kg Domestic)
- Kolkata: ₹3,255.50 (19kg Commercial), ₹939 (14.2kg Domestic)
- Mumbai: ₹3,067.50 (19kg Commercial), ₹912.50 (14.2kg Domestic)
- Bengaluru: ₹3,198 (19kg Commercial), ₹915.50 (14.2kg Domestic)
- Hyderabad: ₹3,367 (19kg Commercial), ₹965 (14.2kg Domestic)
- Chennai: ₹3,283 (19kg Commercial), ₹928.50 (14.2kg Domestic)
CNG and PNG Prices Also Climb
The price revisions extend beyond LPG, with Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) also seeing increases. CNG prices were raised by Rs 2 per kg on May 26, marking the fourth hike in less than two weeks and bringing the total increase to Rs 6 per kg since May 15.
- CNG in Delhi: ₹83.09 per kg
- CNG in Mumbai: ₹86 per kg
- CNG in Kolkata: ₹93.50 per kg
- PNG in Delhi: ₹47.90 per SCM
- PNG in Mumbai: ₹50 per SCM
- PNG in Kolkata: ₹50 per SCM
Other major cities like Bengaluru, Hyderabad, and Chennai also reported increased rates for both CNG and PNG.
Factors Driving the Fuel Price Hikes
These price adjustments are largely attributed to a combination of rising global energy costs and pressure on oil marketing companies to ease margin pressures. The increases follow a surge in international prices, partly influenced by geopolitical tensions, including the US-Israel attack on Iran on February 28 and Tehran’s retaliation, which led to the closure of the Strait of Hormuz. India heavily relies on the Middle East for its energy needs, sourcing over 40 percent of its crude oil and approximately 90 percent of its LPG through this vital waterway.
The government had reportedly delayed energy price revisions, implementing these hikes about 16 days after the conclusion of Assembly elections in several states.
Government Measures to Ensure Supply Stability
Amidst ongoing supply chain pressures, the Ministry of Petroleum and Natural Gas has affirmed India’s sufficient stocks of petrol, diesel, LPG, and natural gas, with refineries operating at optimal capacity. Joint Secretary Sujata Sharma stated that LPG production is nearly 90 DMT per day, and no supply disruptions have been reported.
To further strengthen energy security, oil marketing companies have been directed to maintain a minimum 30-day LPG reserve as part of strategic reserves. While current LPG requirement stands at around 72,000 metric tonnes per day, domestic refineries produce between 50,000 and 52,000 metric tonnes, with the LPG backlog successfully reduced to 4.5 days, indicating improved supply management.