As of August 7, retail prices for Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), and Piped Natural Gas (PNG) across major Indian cities have largely held steady. This stability comes despite ongoing concerns over significant under-recoveries faced by oil marketing companies on domestic LPG cylinders and an uncertain geopolitical landscape.
Commercial LPG Sees Price Reduction
While domestic rates remained unchanged, commercial LPG cylinders (19 kg) saw a notable price cut of ₹192 over the past weekend. This reduction offers some relief to businesses, including hotels and restaurants.
Under-Recovery Challenges Persist
Indian Oil Corporation Chairman AS Sahney confirmed that oil marketing companies continue to incur an under-recovery of ₹503 on every 14.2-kg domestic LPG cylinder. This indicates that the current retail price for household cooking gas remains considerably below its actual cost.
Latest Fuel Prices Across Key Cities (August 7, 2026)
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
Geopolitical Tensions and India's Import Strategy
The global geopolitical situation, particularly concerning the US-Iran relationship, continues to cast a shadow over energy markets. Reports suggest potential agreements that could affect oil transit through the Strait of Hormuz, a critical shipping lane.
Against this backdrop, India, the world's third-largest oil importer and consumer, is actively working to diversify its energy sources. The nation aims to procure up to a quarter of its liquefied petroleum gas imports from the United States by 2027. This strategic shift is intended to lessen India's significant dependence on Middle Eastern suppliers, which accounted for approximately 90% of its 21.85 million metric tonnes of LPG imports in 2025. Reducing reliance on a single region is crucial for minimizing supply disruptions and supporting broader trade negotiations with Washington.
Shifting Consumption Patterns
Recent data indicates a decline in LPG sales, which fell by 17.4% to 2.37 million tonnes. Industry experts attribute this drop primarily to a consumer shift towards piped natural gas (PNG), particularly following the West Asia crisis. The crisis had previously led to restrictions on LPG usage by commercial establishments, though these curbs were lifted last month. Despite the lifting of restrictions, LPG consumption in July remained lower than the previous year, emphasizing the ongoing market transition.