Consumers in major Indian cities are facing renewed pressure on their household budgets as prices for LPG, CNG, and PNG continued their upward trend on May 27. This marks the fourth increase for Compressed Natural Gas (CNG) in under two weeks, with a cumulative rise of ₹6 per kg since May 15.
CNG Prices See Steep Rises
The latest hike, effective from May 26, saw CNG prices jump by ₹2 per kg. This follows earlier increases of ₹1 per kg on May 23 and May 17, and an initial ₹2 per kg on May 15. In Delhi, the current CNG rate stands at ₹83.09 per kg. Indraprastha Gas Limited (IGL) has attributed these adjustments to the rising global energy costs, which are impacting their operational margins.
- Delhi: ₹83.09 per kg
- Bengaluru: ₹90 per kg
- Hyderabad: ₹97 per kg
- Mumbai: ₹81 per kg
- Chennai: ₹91.50 per kg
- Kolkata: ₹93.50 per kg
- Noida & Ghaziabad: ₹91.70 per kg
- Gurugram: ₹88.12 per kg
LPG Cylinder Rates Updated
Standard 14.2 kg domestic LPG cylinders also saw revised rates across key cities:
- Delhi: ₹913 per cylinder
- Bengaluru: ₹915.50 per cylinder
- Hyderabad: ₹965 per cylinder
- Mumbai: ₹912.50 per cylinder
- Chennai: ₹928.50 per cylinder
- Kolkata: ₹939 per cylinder
Commercial 19 kg LPG cylinders similarly experienced price changes, reaching ₹3,071.50 in Delhi and ₹3,024 in Mumbai.
PNG Rates Also Affected
Piped Natural Gas (PNG) rates per Standard Cubic Meter (SCM) have also been updated:
- Delhi: ₹47.90 per SCM
- Bengaluru: ₹52 per SCM
- Hyderabad: ₹51 per SCM
- Mumbai: ₹50 per SCM
- Chennai: ₹50 per SCM
- Kolkata: ₹50 per SCM
Global Factors Drive Price Increases
The repeated price hikes are primarily a result of escalating global energy costs and concerns over fuel availability. A significant contributing factor has been the geopolitical tensions in the Middle East, specifically the US-Israel attack on Iran on February 28 and Tehran's subsequent retaliation, which led to the closure of the Strait of Hormuz. India historically sources over 40 percent of its crude oil and approximately 90 percent of its LPG imports from the Middle East via this critical maritime route.
While reports suggest these increases aim to alleviate margin pressures on oil companies without triggering a major inflationary shock, an impact on overall inflation is still anticipated.
Government Explores Alternative Energy and Addresses Supply Concerns
In response to the energy challenges, Prime Minister Narendra Modi has urged ministers and officials to prioritize the urgent exploration of alternative energy sources. During a Council of Ministers meeting, PM Modi specifically called for a shift away from conventional energy and suggested biogas as a viable substitute for cooking LPG.
Meanwhile, a parliamentary panel questioned Oil Ministry officials regarding reports of long queues and rationing at petrol pumps in certain areas. Officials stated that India currently holds crude oil stocks sufficient for 78 days. They also confirmed that 13 Indian ships remain stranded in West Asia due to the Strait of Hormuz closure. The government is actively working to prevent shortages, though uncertainty persists regarding the duration of the conflict.
Opposition members have voiced concerns over potential shortages of petrol and LPG, criticizing the Oil Ministry for not providing official data and for not taking earlier corrective measures despite clear indications of prolonged conflict in West Asia. They emphasized the need for advance planning to mitigate the impact of higher oil and fertilizer prices on the common populace.