On April 22, consumers across India saw a significant increase in the price of 19-kg commercial LPG cylinders, with rates in Delhi rising by Rs 195.50 to reach Rs 2,078.50. In contrast, prices for 14.2-kg domestic LPG cylinders held steady at Rs 913 in the capital. This surge in commercial LPG costs is directly linked to a 44 percent hike in the Saudi Contract Price, which escalated from $542 per tonne in March to $780 per tonne in April.
Geopolitical Tensions Drive Energy Uncertainty
The fluctuating fuel prices are largely influenced by ongoing geopolitical tensions in West Asia, particularly concerns surrounding US-Iran peace talks and the continued blockade of the Hormuz Strait. India, a nation heavily reliant on energy imports—sourcing over 40 percent of its crude oil and 90 percent of its LPG from West Asian countries—remains highly vulnerable to regional disruptions.
LPG, CNG, and PNG Rates Across Major Indian Cities (April 22)
Here’s a breakdown of LPG, CNG, and PNG prices in key metropolitan areas:
14.2 kg Domestic LPG Cylinder Prices
- Delhi: ₹913
- Kolkata: ₹939
- Mumbai: ₹912.50
- Chennai: ₹928.50
- Bengaluru: ₹915.50
- Hyderabad: ₹965
19 kg Commercial LPG Cylinder Prices
- Delhi: ₹2,078.50
- Kolkata: ₹2,208
- Mumbai: ₹2,031
- Chennai: ₹2,246.50
- Bengaluru: ₹2,161
- Hyderabad: ₹2,320
CNG Prices (per kg)
- Delhi: ₹77.09
- Kolkata: ₹93.50
- Mumbai: ₹80.50
- Chennai: ₹91.50
- Bengaluru: ₹88.95
- Hyderabad: ₹97
PNG Prices (per SCM)
- Delhi: ₹47.89
- Kolkata: ₹50
- Mumbai: ₹50
- Chennai: ₹50
- Bengaluru: ₹52
- Hyderabad: ₹51
Impact on Consumption and Government Response
The instability in West Asia has significantly impacted India's LPG consumption. Official data reveals a 13 percent decline in overall LPG consumption in March, totaling 2.379 million tonnes, a notable decrease compared to the same period last year. Sales to domestic households dropped by 8.1 percent, while non-domestic user sales plummeted by nearly 48 percent, and bulk LPG sales saw a steep 75.5 percent reduction.
In response to these supply disruptions from major exporters like Saudi Arabia and the United Arab Emirates, the Indian government has taken proactive measures. It has directed refineries to reallocate feedstock from petrochemical production to boost domestic LPG output. This strategic shift led to an increase in domestic LPG production to 1.4 million tonnes in March, up from 1.1 million tonnes a year prior, aiming to prioritize cooking gas availability for households.