On May 18, 2026, Indian households and businesses are grappling with significant increases in the prices of Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), and Piped Natural Gas (PNG). These hikes reflect a broader trend of rising energy costs, with petrol and diesel also seeing their first price adjustments in over four years.
The national capital, Delhi, and the financial hub, Mumbai, have seen CNG prices jump by ₹2 per kilogram, with Delhi experiencing an additional ₹1 per kilogram increase. Simultaneously, petrol and diesel prices rose by ₹3 per liter each across the country. These adjustments come amidst a volatile global energy market, primarily driven by escalating crude oil prices linked to the ongoing conflict in West Asia and the strategic blockade of the Strait of Hormuz, a critical shipping route for a substantial portion of global oil and gas.
Government Responds to Energy Challenges
In response to the growing energy uncertainties, India has intensified its efforts to secure stable supplies. A key development includes strengthened cooperation with the UAE on LPG supplies and strategic petroleum reserves, a move initiated during Prime Minister Narendra Modi's recent visit to the region.
Domestically, the Prime Minister has urged citizens to adopt judicious fuel consumption habits, recommending increased use of public transport, greater adoption of work-from-home options, and deferring non-essential foreign travel and gold purchases to conserve foreign exchange.
Policy Changes for Gas Connections
Further policy shifts are underway to streamline energy distribution. The government has mandated that households with access to PNG connections must surrender their subsidized domestic LPG connections. New domestic LPG connections are now barred for PNG consumers, and existing LPG supply to households with PNG access could cease within three months if they do not switch over.
These price adjustments and policy changes underscore the complex interplay of global geopolitics and domestic energy security, impacting the daily lives and budgets of millions across India.