India Diversifies Energy Sources Amidst Price Concerns
Concerns over the prices of Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), and Piped Natural Gas (PNG) persist amidst global supply uncertainties. In response, the Indian government is actively pursuing a comprehensive strategy to diversify its energy sources and bolster domestic availability of these crucial fuels, promoting a wider shift in household cooking fuel usage.
As part of its strategic supply diversification, the government has directed major public sector oil marketing companies—Indian Oil, Bharat Petroleum, and Hindustan Petroleum—to procure at least 15% of India’s LPG imports for 2027 through US term contracts. This target is slated to increase to 25% in subsequent years. India has also expanded its LPG purchases from the United States and Algeria, aiming to mitigate exposure to potential supply disruptions originating from the Middle East.
Latest Fuel Prices Across Major Indian Cities (August 25)
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 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
- 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
Boosting Domestic Production and Piped Gas Adoption
To further strengthen domestic LPG supplies and reduce import dependency, the Petroleum and Natural Gas Ministry has set maximum LPG production levels for 21 refineries and upstream companies. This initiative aims to achieve a combined potential output of 63,810 tonnes per day, creating a significant domestic supply buffer. This move is crucial, especially after recent geopolitical events in West Asia highlighted India’s vulnerability to disruptions in imported cooking gas supplies. The targeted output is more than double the domestic LPG production recorded in the financial year ending March 31, 2026, and accounts for approximately 70% of daily national consumption.
Simultaneously, the government is incentivizing the expansion of piped natural gas connections. An incentive scheme for city gas distributors has been approved to increase domestic PNG connections, effective September 1, 2026. States and Union Territories have been urged to provide district-level administrative support to accelerate the transition from LPG to piped gas connections.
PNG's Resilience and Regulatory Push
The emphasis on faster PNG adoption stems from its demonstrated resilience during past LPG supply disruptions, particularly those linked to the West Asia crisis. While domestic LPG supplies were prioritized during such periods, leading to restrictions for commercial and industrial consumers, piped natural gas proved more stable, especially for residential users. Domestic PNG supplies benefit from priority allocation of domestically produced natural gas, shielding them from disruptions affecting imported LPG and LNG.
In an August 21 letter to state chief secretaries, Petroleum Secretary Neeraj Mittal underscored PNG’s vital role in India’s energy transition. He highlighted its benefits in reducing the logistical burden of LPG distribution, enhancing consumer convenience, and providing a safer, cleaner, and more efficient cooking fuel. The ministry is also seeking district-level intervention to enforce a regulatory framework that prevents households from maintaining both LPG and PNG connections where piped gas is readily available. The Natural Gas and Petroleum Products Distribution Orders of 2026 and LPG Control Orders, under the Essential Commodities Act, 1955, now prohibit simultaneous connections and allow for LPG supply discontinuation if households do not apply for PNG connections after due notice.