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Fuel Prices August 12: LPG, CNG, PNG Rates Stable Amid Geopolitical Tensions

· · 3 min read

Retail prices for LPG, CNG, and PNG remain largely stable across major Indian cities on August 12, 2026, despite ongoing geopolitical tensions affecting global oil supplies. Commercial LPG cylinder rates saw a recent reduction, while domestic LPG continues to be sold below cost.

On August 12, 2026, consumers across major Indian cities observed largely unchanged retail prices for Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), and Piped Natural Gas (PNG). This stability comes even as global energy markets grapple with renewed concerns over shipping attacks and geopolitical instability in key oil transit routes, particularly in West Asia.

Domestic LPG Cylinder Rates

The price for a 14.2 kg domestic LPG cylinder has held steady in Delhi at ₹942 since June 2026. State fuel retailers, including Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corp, continue to sell cooking gas to households below market rates, incurring significant revenue losses. The government has provided subsidies, including ₹30,000 crore to clear some dues for 2025/26 and 2026/27. However, pending LPG dues to retailers still exceeded ₹59,000 crore as of July 31, 2026. The revenue loss on domestic LPG cylinders narrowed to ₹188 in August from ₹500 in July.

Key domestic LPG rates (14.2 kg cylinder) on August 12, 2026:

  • Delhi: ₹942
  • Mumbai: ₹941.50
  • Kolkata: ₹968
  • Chennai: ₹957.50
  • Bengaluru: ₹944.50
  • Hyderabad: ₹994
  • Jaipur: ₹945.50
  • Noida: ₹939.50
  • Gurugram: ₹950.50
  • Chandigarh: ₹951.50

Commercial LPG Cylinder Prices

In contrast to domestic rates, commercial LPG prices for 19 kg cylinders, used by hotels and restaurants, saw a significant reduction of ₹192 earlier this month. Despite this cut, prices remain higher than domestic rates.

Commercial LPG rates (19 kg cylinder) on August 12, 2026:

  • Delhi: ₹2,738
  • Mumbai: ₹2,691.50
  • Kolkata: ₹2,872.50
  • Chennai: ₹2,906
  • Bengaluru: ₹2,821
  • Hyderabad: ₹2,985
  • Jaipur: ₹2,765.50
  • Noida: ₹2,738
  • Gurugram: ₹2,755
  • Chandigarh: ₹2,760

CNG and PNG Prices Across Major Cities

CNG Rates (per kg)

  • Delhi: ₹83.09
  • Mumbai: ₹86
  • Kolkata: ₹99.50
  • Chennai: ₹97
  • Bengaluru: ₹97
  • Hyderabad: ₹109
  • Jaipur: ₹96.50
  • Noida: ₹91.70
  • Gurugram: ₹88.12
  • Chandigarh: ₹99.90

PNG Rates (per SCM)

  • Delhi: ₹49.59
  • Mumbai: ₹51.50
  • Kolkata: ₹50
  • Chennai: ₹50
  • Bengaluru: ₹53
  • Hyderabad: ₹51
  • Jaipur: ₹49.50
  • Noida: ₹49.45
  • Gurugram: ₹48.40
  • Chandigarh: ₹54.70

Global Tensions Impact Energy Markets

The stability in India's retail fuel prices contrasts with a volatile international energy landscape. Recent reports indicate separate attacks on shipping by the US and Yemen’s Iran-aligned Houthis, further escalating geopolitical tensions. These incidents, occurring in the Gulf of Oman and at the entrance to the Red Sea – vital choke points for global oil supplies – have dimmed prospects for an end to the ongoing Iran conflict, despite assertions from US President Donald Trump that a deal was imminent. Oil prices reacted to the uncertainty, with Brent crude futures climbing 1.4% to settle at $88.91 per barrel, and US crude rising 1.3% to $83.20.

India's Energy Security Strategy

Amidst these global challenges, India is actively pursuing strategies to enhance its energy security. The nation aims to source up to a quarter of its liquefied petroleum gas imports from the United States by 2027. This strategic shift is intended to reduce reliance on Middle Eastern supplies, mitigate potential disruptions, and support ongoing efforts to secure a trade deal with Washington. Domestically, LPG sales in India have seen a 17.4% decline to 2.37 million tonnes, with industry officials attributing this shift largely to consumers transitioning towards piped natural gas, particularly in the wake of the West Asia crisis.

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