Fuel prices across India saw fresh revisions on June 2, 2026, with commercial LPG cylinders experiencing another hike, while domestic cooking gas rates remained stable. Compressed Natural Gas (CNG) also saw an increase, adding to concerns about rising energy costs.
Commercial LPG Prices Rise Again
State-owned oil marketing companies implemented a new price revision for commercial LPG cylinders on June 1, taking effect on June 2. A 19 kg commercial LPG cylinder in Delhi is now ₹42 more expensive, reaching ₹3,113.50. Kolkata saw an even sharper increase of ₹53.50, with prices climbing to ₹3,255.50. In Mumbai, the 19 kg cylinder is priced at ₹3,067.50, while Chennai recorded ₹3,283. Hyderabad's commercial cylinder is ₹3,367, and Bengaluru stands at ₹3,198.
Separately, the 5 kg Free Trade LPG cylinder in Delhi now costs ₹821.50, reflecting an ₹11 increase.
CNG Rates See Multiple Hikes
CNG prices have also been on an upward trend. On May 26, rates increased by ₹2 per kg, marking the fourth hike since May 15, totaling a ₹6 per kg rise. As of June 2, CNG in Delhi is priced at ₹83.09 per kg. Other major cities also reflect these increases: Bengaluru at ₹95, Hyderabad at ₹97, Mumbai at ₹86, Chennai at ₹95, and Kolkata at ₹93.50.
Domestic LPG Prices Remain Unchanged
Despite the volatility in global energy markets and rising import costs, household cooking gas (14.2 kg domestic LPG cylinders) rates have been held steady. The price for a 14.2 kg cylinder remains at ₹913 in Delhi, ₹912.50 in Mumbai, ₹928.50 in Chennai, and ₹939 in Kolkata. This stability is part of government efforts to shield consumers from immediate global price swings.
Ujjwala Scheme Beneficiaries Protected
For beneficiaries of the Ujjwala scheme, the effective price of a domestic LPG cylinder is even lower, at ₹613, thanks to a ₹300 per cylinder direct benefit transfer subsidy. The government estimates that the actual cost of supplying a domestic LPG cylinder has risen significantly, partly due to a 38 percent jump in the Saudi Contract Price for propane in April.
Global Factors Driving Fuel Costs
The recent surge in global energy prices, particularly for crude oil and LPG, has been attributed to geopolitical tensions. An attack on Iran in February and subsequent retaliation, which led to the closure of the Strait of Hormuz, significantly impacted international markets. India sources over 40 percent of its crude oil and about 90 percent of its LPG imports from the Middle East, primarily through this critical shipping lane. The government has stated it is taking steps to manage domestic supplies and strengthen fuel reserves amidst these supply chain pressures.
Financial Burden on Oil Marketing Companies
The decision to keep domestic LPG prices stable has come at a significant cost to state-owned fuel retailers. They reported an under-recovery of ₹41,338 crore on domestic LPG sales in 2024-25. With the recent spike in international prices, this under-recovery for 2025-26 is estimated to reach around ₹60,000 crore. To help mitigate this financial strain, the government has approved compensation of ₹30,000 crore to these companies in the current fiscal year.
PNG Rates
Piped Natural Gas (PNG) prices also vary across cities. In Delhi, PNG is priced at ₹47.90 per SCM. Other rates include Bengaluru at ₹52, Hyderabad at ₹51, Mumbai at ₹50, Chennai at ₹50, and Kolkata also at ₹50 per SCM.