Fuel Prices Climb Amid Global Energy Concerns
Indian consumers are facing continued increases in fuel costs, with LPG, CNG, and PNG rates seeing further hikes on May 29, 2026. These adjustments come as global energy prices surge, driven by geopolitical tensions and disruptions in key shipping routes, most notably the Strait of Hormuz.
Compressed Natural Gas (CNG) prices experienced a ₹2 per kilogram increase on May 26, marking the fourth hike in less than two weeks. This brings the total rise to ₹6 per kilogram since May 15. The latest increase by Indraprastha Gas Limited (IGL) reflects efforts to mitigate margin pressures on oil firms grappling with higher international energy costs.
Previous CNG price adjustments included a ₹1 per kilogram rise on both May 23 and May 17, following an initial ₹2 per kilogram hike on May 15. These cumulative increases are directly linked to the aftermath of the US-Israel attack on Iran on February 28 and Tehran's subsequent retaliation, which led to the closure of the Strait of Hormuz, a critical choke point for global oil shipments.
Latest Rates for LPG, CNG, and PNG Across Major Indian Cities
Here are the updated fuel prices as of May 29, 2026, across major Indian cities:
14.2 kg Domestic LPG Cylinder Rates
- Delhi: ₹913
- Bengaluru: ₹915.50
- Hyderabad: ₹965
- Mumbai: ₹912.50
- Chennai: ₹928.50
- Kolkata: ₹939
19 kg Commercial 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: ₹83.09
- Bengaluru: ₹90
- Hyderabad: ₹97
- Mumbai: ₹81
- Chennai: ₹91.50
- Kolkata: ₹93.50
Additionally, CNG is retailing at ₹91.70 per kilogram in Noida and Ghaziabad, and ₹88.12 per kilogram in Gurugram, according to IGL.
PNG Prices per SCM (Standard Cubic Meter)
- Delhi: ₹47.90
- Bengaluru: ₹52
- Hyderabad: ₹51
- Mumbai: ₹50
- Chennai: ₹50
- Kolkata: ₹50
Strait of Hormuz Situation and India's Energy Outlook
The recent fuel price hikes are significantly influenced by the ongoing situation in the Strait of Hormuz. India relies heavily on the Middle East for its energy needs, sourcing over 40 percent of its crude oil imports and approximately 90 percent of its LPG through this strategic waterway. Its closure has created supply chain disruptions and driven up global energy costs.
Despite reports of a potential deal to extend the US-Iran ceasefire by 60 days and restore unrestricted shipping through the Strait, the agreement has not yet been finalized, with US President Donald Trump's approval still pending. This uncertainty continues to fuel concerns about future energy price stability.
In response to the crisis, Indian officials have confirmed crude oil stocks sufficient for the next 78 days. However, multiple Indian ships remain stranded in West Asia due to the ongoing closure. The government had previously delayed energy price revisions, implementing these hikes after the conclusion of Assembly elections in several states. Prime Minister Narendra Modi has also urged a shift towards alternative energy sources, suggesting biogas as a substitute for LPG in cooking.