Stable Fuel Prices Mask Underlying Pressures
As of August 22, 2026, prices for domestic LPG cylinders, CNG, and PNG largely hold steady for households across India's major cities. This stability persists even as the West Asia conflict, involving the US, Israel, and Iran, continues to impact global energy markets.
Despite the current price stability, concerns about future supplies persist, particularly due to disruptions around the Strait of Hormuz. These geopolitical tensions have spurred India to actively diversify its energy supply chain, secure imports from alternative sources, and strengthen the domestic availability of cooking gas.
Challenges for State-Run Retailers
The current environment places significant pressure on state-run fuel retailers. LPG sales in India have seen a decline, and domestic cooking gas is still being sold below cost, leading to considerable revenue losses. Junior oil minister Suresh Gopi recently reported that Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation incurred a revenue loss of ₹188 per cylinder on LPG sales in August alone.
Furthermore, LPG consumption fell by over 16% year-on-year last month, reaching 2.35 million tonnes. This decline, coupled with shortages, has pushed households and industries towards piped natural gas (PNG) and more polluting fuels like biomass and kerosene.
Government Initiatives to Boost Energy Security
In response to these challenges, the Indian government is implementing several measures to reduce dependence on imported cooking gas, curb subsidy expenditures, and expand access to cleaner fuels.
- Diversifying Imports: The government has directed major oil corporations – Indian Oil, Bharat Petroleum, and Hindustan Petroleum – to source at least 15% of India’s LPG imports for 2027 through US term contracts. Plans are in motion to potentially increase this share to as much as 25%.
- Strengthening Domestic Production: An order issued on August 13 by the Petroleum and Natural Gas Ministry fixed maximum LPG production levels for 21 refineries and upstream companies. This aims to create a domestic supply buffer with a combined production potential of 63,810 tonnes per day, more than double the domestic LPG production in the last fiscal year and approximately 70% of the country's daily consumption.
- Promoting PNG: An incentive scheme for city gas distributors has been approved to encourage more domestic connections for piped cooking gas, set to begin on September 1, 2026.
Current Fuel Prices Across Major Indian Cities (August 21)
Domestic LPG (14.2 kg cylinder)
- 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
Commercial LPG (19 kg cylinder)
- 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 (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 (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