As of August 17, 2026, the prices for Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), and Piped Natural Gas (PNG) have largely held steady across India for over a month. While commercial LPG cylinders saw a price cut earlier this month, household cooking gas and natural gas rates have remained stable. This stability comes amidst persistent concerns about potential price hikes due to global uncertainties, particularly those linked to the conflict in West Asia.
In a significant policy move, the Indian government has, for the first time, fixed maximum production targets for individual public and private sector refineries and upstream companies. This aims to bolster domestic supply and reduce the nation's reliance on imported cooking gas.
Current Fuel Prices Across Major Indian Cities
While prices vary slightly by city, here's a snapshot of the latest rates:
Domestic LPG (14.2 kg cylinder)
A 14.2 kg domestic LPG cylinder is priced at ₹942 in Delhi. Other major cities also show similar rates, with Mumbai at ₹941.50, Bengaluru at ₹944.50, Hyderabad at ₹994, Chennai at ₹957.50, Kolkata at ₹968, and Gurugram at ₹950.50.
Commercial LPG (19 kg cylinder)
Commercial LPG cylinders (19 kg) are available at ₹2,738 in Delhi. Rates in other key cities include ₹2,691.50 in Mumbai, ₹2,821 in Bengaluru, ₹2,985 in Hyderabad, ₹2,906 in Chennai, and ₹2,872.50 in Kolkata.
CNG Prices (per kg)
CNG costs ₹83.09 per kg in Delhi. In other metropolitan areas, prices are ₹86 in Mumbai, ₹97 in Bengaluru and Chennai, ₹109 in Hyderabad, and ₹88.12 in Gurugram.
PNG Prices (per SCM)
For Piped Natural Gas, the rate is ₹49.59 per SCM (Standard Cubic Meter) in Delhi. Mumbai residents pay ₹51.50, Bengaluru ₹53, Hyderabad ₹51, Chennai ₹50, and Gurugram ₹48.40.
Government Sets New LPG Production Targets
The Petroleum and Natural Gas Ministry issued an order on August 13, establishing maximum LPG production levels for 21 refineries and upstream companies. The combined production potential is set at 63,810 tonnes per day, a figure more than double the domestic LPG output recorded in the fiscal year ending March 31, 2026. This new target represents approximately 70% of India's daily LPG consumption.
This strategic move is designed to build a robust domestic supply buffer, particularly in response to the West Asia conflict, which highlighted India's vulnerability to disruptions in imported cooking gas. Among the allocated targets, Reliance Industries Ltd.'s older refinery has been assigned the largest share, with a mandate to produce up to 18,000 tonnes of LPG per day.
Subsidies, Consumption, and Import Strategy
Junior Oil Minister Suresh Gopi informed lawmakers that state-run fuel retailers, including Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation, have been selling 14.2 kg household cooking gas cylinders at ₹942 in Delhi since June 2026. He noted that these retailers incurred a revenue loss of ₹188 per cylinder in August due to selling below market rates.
The government compensates these companies for their losses, although payments have sometimes been delayed. Subsidies totaling ₹30,000 crore were paid to clear dues for the 2025/26 and 2026/27 fiscal years. However, pending LPG dues to state retailers still stood at over ₹59,000 crore as of July 31.
LPG consumption in India saw a decline of over 16% year-on-year last month, reaching 2.35 million tonnes. This reduction has pushed households and industries towards piped natural gas (PNG) and more polluting alternatives like biomass and kerosene, partly due to perceived shortages. To further secure its energy supply, India plans to increase its LPG imports from the United States. Reports indicate that the government has directed state-run oil companies to source at least 15% of India’s LPG imports for 2027 through US term contracts, with ambitions to raise this share to up to 25% by 2027.