Print

Lower CNG, PNG Prices to ease household and transport fuel costs: Govt

Published: Jan 02, 2026

By TIOLCorplaws News Service

NEW DELHI, JAN 02, 2026: IT is being reported in some sections of the media that the price of commercial LPG cylinders has been increased by Rs.111. In this regard, it may be noted that the price of commercial LPG cylinders is market-determined and linked to international benchmarks. Accordingly, revisions in commercial LPG prices reflect movements in global LPG prices and associated costs. The prices of domestic LPG remains unchanged.

India imports about 60% of its LPG requirement, and domestic LPG prices are therefore, linked to international prices, with Saudi CP serving as the international benchmark. While the average Saudi CP rose by about 21% from USD 385 per metric tonne in July 2023 to USD 466 per metric tonne in November 2025, the price of domestic LPG was reduced by about 22% during the same period, from Rs.1103 in August 2023 to Rs.853 in November 2025.

To protect domestic consumers the effective price of a 14.2 kg domestic LPG cylinder, which costs around Rs.950, is available at Rs.853 for non-PMUY  domestic consumers in Delhi and at Rs.553 for PMUY beneficiaries. This reflects a reduction of about 39% in the effective price for PMUY consumers, from Rs.903 in August 2023 to Rs.553 in November 2025, underscoring the Government's focused support to ensure sustained use of clean cooking fuel. There is no change in this pricing.

For the financial year 2025-26, the Government has approved the continuation of the targeted subsidy of Rs.300 per 14.2 kg cylinder for up to nine refills per year for PMUY consumers, with an approved expenditure of Rs.12,000 crore. These measures demonstrate the Government's continued focus on ensuring affordable access to clean cooking fuel for households.

While international LPG prices increased during 2024-25 and continue to remain elevated, to shield domestic consumers from global price volatility, the increase in costs was not passed on to domestic LPG prices, resulting in Rs.40,000 crore losses for Oil Marketing Companies (OMCs). To address this and ensure uninterrupted supply of domestic LPG at affordable prices, the Government has recently approved compensation of Rs.30,000 crore to the OMCs.

A comparison of domestic LPG prices with neighbouring countries, as on 01.11.2025, given below, clearly highlights the affordability of LPG for Indian consumers.

Source: Petroleum Planning and Analysis Cell (PPAC)

*Effective cost to PMUY beneficiaries in Delhi, effective cost is Rs. 853 for non-PMUY consumers in Delhi

In addition, at the start of the New Year, there has been positive news for consumers in the clean fuel segment. Prices of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) have been reduced in select cities with effect from 1 January. This includes downward revisions in PNG prices in parts of the Delhi-NCR region and a reduction of Rs.1 each in CNG and domestic PNG prices announced by gas distribution companies. These reductions follow recent changes in pipeline tariffs and are expected to provide relief to households and vehicle users, while further promoting the adoption of cleaner fuels.

In the context of commercial LPG prices, it is important to note that the number of commercial LPG cylinder users is significantly lower, at around 30 lakh (includes users of Public Sector Companies only), as compared to over 33 crore domestic LPG consumers. Commercial LPG is primarily used by large establishments such as hotels, restaurants, and other big commercial enterprises, whereas domestic LPG caters to household cooking needs across the country. Notably, there has been no change in the prices of domestic LPG cylinders, underscoring the Government's continued commitment to protecting household consumers.

Overall, while commercial LPG prices reflect international market conditions, the Government has taken consistent and targeted measures to insulate domestic LPG consumers from global price fluctuations, ensure affordability, and promote the use of clean cooking and transport fuels across the country.