Indian consumers are facing higher costs for essential fuels, as prices for Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), and Piped Natural Gas (PNG) were revised upwards on May 23, 2026. These hikes come amidst a volatile global energy market, significantly impacted by geopolitical tensions in West Asia.
Global Tensions Drive Up Energy Costs
The conflict in West Asia, particularly following the US-Israel attack on Iran on February 28 and Tehran's subsequent retaliation, has led to the effective closure of the Strait of Hormuz. This critical maritime choke point, through which a significant portion of global oil and gas supplies pass, has caused severe disruptions and pushed international energy prices to new highs. India, heavily reliant on imports, is particularly vulnerable to these fluctuations.
The recent price adjustments mark a continuation of increases, with fuel rates having been raised twice within the past week. CNG prices in Delhi and Mumbai, for instance, first saw a hike of Rs 2 per kilogram, followed by an additional Re 1 per kilogram increase in Delhi. Similarly, petrol and diesel prices were initially raised by Rs 3 per litre each, then by another 90 paise per litre. Industry sources indicate these calibrated increases aim to partially alleviate margin pressures on oil companies, though an inflationary impact on the economy is still expected.
Current Fuel Prices Across Major Indian Cities (May 23, 2026)
14.2 kg LPG Cylinder Rates
- Delhi: ₹913
- Bengaluru: ₹915.50
- Hyderabad: ₹965
- Mumbai: ₹912.50
- Chennai: ₹928.50
- Kolkata: ₹939
Commercial (19 kg) LPG Cylinder Rates
- Delhi: ₹3,071.50
- Bengaluru: ₹3,152
- Hyderabad: ₹3,315
- Mumbai: ₹3,024
- Chennai: ₹3,237
- Kolkata: ₹3,202
CNG Prices (per kg)
- Delhi: ₹80.09
- Bengaluru: ₹90
- Hyderabad: ₹97
- Mumbai: ₹83
- Chennai: ₹91.50
- Kolkata: ₹93.50
PNG Prices (per SCM)
- Delhi: ₹47.90
- Bengaluru: ₹52
- Hyderabad: ₹51
- Mumbai: ₹50
- Chennai: ₹50
- Kolkata: ₹50
Government Responds to Energy Crisis
In response to the escalating crisis, Prime Minister Narendra Modi convened a Council of Ministers meeting, urging ministers and government officials to urgently explore alternative sources of energy. The Prime Minister emphasized a shift beyond conventional energy, specifically suggesting biogas as a viable substitute for LPG cooking gas.
Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, stated that while recent fuel price hikes had cut losses by a fourth, oil companies were still incurring significant losses, estimated at around ₹750 crore per day.
Compounding the issue, India is also grappling with supply chain disruptions, particularly for cooking gas. The nation is seeking the return of its ships stranded in the Gulf before dispatching new vessels to load fuel. A senior government official indicated that 13 Indian-flagged vessels and one Indian-owned vessel remain stuck on the west side of the Strait of Hormuz, while 13 energy cargo vessels, mostly LPG, have managed to transit out since the Strait's effective closure. Prior to the conflict, India sourced over 40% of its crude oil and approximately 90% of its LPG imports from the Middle East via this critical waterway, leading to one of the worst cooking gas supply disruptions in decades.