Fuel prices in India have seen selective revisions at the start of September 2026, impacting commercial users and those relying on compressed natural gas (CNG) and piped natural gas (PNG). While domestic liquefied petroleum gas (LPG) rates for household consumption have held steady, commercial LPG cylinders have become costlier, and CNG and PNG rates have climbed in several major cities following monthly adjustments by gas distributors.
Commercial LPG Cylinder Prices Hike
Indian Oil Corporation Limited (IOCL) announced an increase in the rates of 19-kg commercial LPG cylinders. This hike ranges from ₹9.50 to ₹11.50 per cylinder. Consequently, a 19-kg commercial LPG cylinder now costs ₹2,747.50 in Delhi, with similar increases observed across other metropolitan areas.
CNG and PNG Rates See Upward Revisions
Gas distributors like Indraprastha Gas Ltd (IGL) and Mahanagar Gas Ltd (MGL) have implemented price adjustments for natural gas. In Mumbai, CNG prices rose by ₹2 per kg, bringing the latest rate to ₹88 per kg, effective September 1. Domestic piped natural gas (DPNG) also saw a ₹1 per standard cubic metre (SCM) increase in Mumbai from the same date.
In Delhi, IGL raised the price of compressed natural gas by ₹3.89 per kg, citing a significant surge in international LNG prices. This increase, effective August 29, positions the CNG price in Delhi at ₹86.98 per kg, up from ₹83.09 per kg previously. The company attributed this hike to the renewed West Asia crisis and disruptions in gas cargo movements through the Strait of Hormuz.
City-Wise Fuel Prices (September 2, 2026)
Domestic LPG (14.2 kg)
- 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 (19 kg)
- Delhi: ₹2,747.50
- Mumbai: ₹2,701
- Kolkata: ₹2,884
- Chennai: ₹2,916.50
- Bengaluru: ₹2,831
- Hyderabad: ₹2,996.00
- Jaipur: ₹2,776
- Noida: ₹2,747.50
- Gurugram: ₹2,764.50
- Chandigarh: ₹2,769.50
CNG Prices (per kg)
- Delhi: ₹86.98
- Mumbai: ₹88
- Kolkata: ₹93.50
- Chennai: ₹97
- Bengaluru: ₹97
- Hyderabad: ₹112
- Jaipur: ₹96.50
- Noida: ₹95.59
- Gurugram: ₹92.01
- Chandigarh: ₹99.90
PNG Prices (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
Government Efforts to Diversify Supply
Amid these price adjustments, the Indian government is actively working to reduce dependence on imported cooking gas, secure supplies from alternative sources, and strengthen domestic LPG availability. Efforts are also underway to expand piped natural gas connections. An incentive scheme for city gas distributors, approved from September 1, 2026, aims to increase domestic PNG connections, with states and Union Territories urged to provide administrative support for the shift from LPG to piped gas.
India is increasingly turning to the United States for LPG and LNG supplies, particularly in light of disruptions in West Asia. Maritime intelligence data shows significant LPG imports from the US in recent months, accounting for a substantial portion of the country’s total LPG imports. This shift reflects the impact of geopolitical events, such as the effective closure of the Strait of Hormuz, which traditionally serves as a key shipping route for Gulf producers.
What This Means for Consumers
For households, monthly cooking-gas budgets remain predictable as domestic LPG rates are unchanged. However, commercial users and fleets running on CNG or PNG should factor in the latest city-specific revisions when planning their operational expenses.