Retail prices for Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), and Piped Natural Gas (PNG) have held steady across India's major cities as of August 10. While consumers see stable rates, oil marketing companies (OMCs) continue to grapple with substantial under-recoveries on domestic LPG cylinders, a situation compounded by ongoing geopolitical tensions and supply chain risks.
LPG Under-Recoveries Persist
Despite a recent reduction of ₹192 per 19-kg cylinder for commercial LPG earlier this month, domestic 14.2-kg LPG cylinders are still being sold below cost. Indian Oil Corporation Chairman AS Sahney stated that OMCs face an under-recovery of ₹503 on each domestic cylinder. This financial strain is a key focus for the industry amid fluctuating global energy markets.
Latest LPG Prices (August 10)
14.2 kg Domestic LPG Cylinder Rates:
- Delhi: ₹942
- Bengaluru: ₹944.50
- Hyderabad: ₹994
- Mumbai: ₹941.50
- Chennai: ₹957.50
- Kolkata: ₹968
- Jaipur: ₹945.50
- Noida: ₹939.50
- Gurugram: ₹950.50
- Chandigarh: ₹951.50
19 kg Commercial LPG Cylinder Rates:
- Delhi: ₹2,738
- Bengaluru: ₹2,821
- Hyderabad: ₹2,985
- Mumbai: ₹2,691.50
- Chennai: ₹2,906
- Kolkata: ₹2,872.50
- Jaipur: ₹2,765.50
- Noida: ₹2,738
- Gurugram: ₹2,755
- Chandigarh: ₹2,760
CNG and PNG Rates on August 10
CNG Prices (per kg):
- Delhi: ₹83.09
- Bengaluru: ₹97
- Hyderabad: ₹109
- Mumbai: ₹86
- Chennai: ₹97
- Kolkata: ₹99.50
- Jaipur: ₹96.50
- Noida: ₹91.70
- Gurugram: ₹88.12
- Chandigarh: ₹99.90
PNG Prices (per SCM - Standard Cubic Meter):
- Delhi: ₹49.59
- Bengaluru: ₹53
- Hyderabad: ₹51
- Mumbai: ₹51.50
- Chennai: ₹50
- Kolkata: ₹50
- Jaipur: ₹49.50
- Noida: ₹49.45
- Gurugram: ₹48.40
- Chandigarh: ₹54.70
Geopolitical Factors and India's Energy Strategy
The stability in retail prices belies a complex geopolitical backdrop. The uncertain situation between the US and Iran, particularly concerning the Strait of Hormuz, continues to pose supply risks. A proposed agreement between Iran and Oman could grant Tehran greater control over traffic through this critical waterway, impacting global energy flows.
In response, India is actively working to diversify its energy sources. The nation plans to procure up to a quarter of its liquefied petroleum gas imports from the United States by 2027. This strategic move aims to reduce India's reliance on Middle Eastern suppliers, mitigate potential supply disruptions, and bolster trade relations with Washington.
Shift in Consumption Patterns
Recent data indicates a notable shift in India's energy consumption. LPG sales have declined by 17.4% to 2.37 million tonnes, with industry officials attributing this fall primarily to a consumer migration towards piped natural gas (PNG). This trend has intensified since the West Asia crisis began, leading to restrictions on LPG usage by commercial establishments like hotels and restaurants.