Indian households and businesses are grappling with increased fuel expenses as prices for Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), and Piped Natural Gas (PNG) were revised upwards on June 14, 2026. This marks the second such increase for domestic cooking gas cylinders in three months, reflecting ongoing volatility in global energy markets.
Domestic LPG Cylinder Prices Climb
In Delhi, the cost of a 14.2-kg domestic LPG cylinder now stands at ₹942, up by ₹29 from its previous price of ₹913. Similar increases were observed across major Indian cities, with Bengaluru at ₹944.50, Hyderabad at ₹994, Mumbai at ₹941.50, Chennai at ₹957.50, and Kolkata at ₹968.
Industry sources indicate that these adjustments only partially offset the substantial losses incurred by oil marketing companies on domestic LPG sales. It is estimated that these companies were losing approximately ₹703 on each cylinder prior to the latest revision. The government noted that the actual cost of supplying a domestic LPG cylinder has escalated to over ₹1,600.
Global Factors Driving Up Costs
The primary driver behind these rising costs is the surge in international energy prices, significantly influenced by geopolitical tensions, particularly the conflict in West Asia. India's LPG import expenses are directly linked to the Saudi Contract Price, which has seen a considerable increase of about 46 percent since February due to ongoing supply disruptions in the Gulf region.
Commercial LPG cylinders also saw price revisions earlier on June 1, with a 19-kg cylinder increasing by ₹42 in Delhi and ₹53.50 in Kolkata. The price of a 5-kg Free Trade LPG cylinder in Delhi also rose by ₹11 to ₹821.50.
CNG and PNG Rates Also Affected
Consumers using CNG for vehicles and PNG for domestic cooking are also experiencing higher costs. While specific city-wise increases vary, the general trend reflects the broader impact of elevated global energy rates and pressures on state-owned fuel retailers.
- CNG Prices (₹/kg): Delhi ₹83.09, Bengaluru ₹95, Hyderabad ₹97, Mumbai ₹86, Chennai ₹96, Kolkata ₹93.50.
- PNG Prices (₹/SCM): Delhi ₹47.90, Bengaluru ₹52, Hyderabad ₹51, Mumbai ₹50, Chennai ₹50, Kolkata ₹50.
Government Responds to Price Pressures
Union Minister Pralhad Joshi expressed regret over the latest gas price hikes, attributing them to unavoidable global circumstances. He highlighted the limited sources of LPG and the complex challenges involved in its procurement and transportation, including increased costs due to extended transshipment times. The government affirmed its commitment to strengthening fuel reserves and managing domestic supplies to mitigate hardship for consumers.
Changes to Ujjwala Yojana Subsidies
In a related development, the government has adjusted the subsidy framework for beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY). The number of subsidized cooking gas cylinders available annually to PMUY beneficiaries has been reduced from nine to four. This change aims to align support levels with average household consumption patterns.
Praveen Mal Khanooja, Additional Secretary in the Ministry of Petroleum and Natural Gas, clarified that the revised entitlement matches the average annual consumption of Ujjwala beneficiaries. He also noted that a targeted subsidy of ₹300 per 14.2-kg LPG cylinder is credited directly to beneficiaries' bank accounts after each refill, for up to 12 cylinders annually, promoting cleaner cooking fuel and improving affordability.
These combined adjustments in fuel prices and subsidy policies underscore the government's efforts to navigate the challenges posed by escalating international costs, constrained sourcing options, and global supply chain disruptions.