New Year Gift: Household LPG prices hold steady, CNG and PNG cheaper

The government has announced that domestic Liquefied Petroleum Gas (LPG) prices for households will remain unchanged, while Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) prices have been reduced in select cities , effective 1 January 2026. It is being reported in some sections of the media that the price of commercial LPG cylinders has been increased by ₹111 , but officials clarified that this does not affect household LPG consumers.

While some media reports suggested a rise in commercial LPG cylinder prices, officials clarified that commercial LPG pricing is market-determined and linked to international benchmarks , such as the Saudi Contract Price (CP). Revisions in commercial LPG prices reflect global price movements and associated costs, and do not affect household consumers.

India imports around 60% of its LPG requirement , making domestic LPG prices sensitive to international rates. The Saudi CP increased by about 21% from US$ 385 per metric tonne in July 2023 to US$ 466 per metric tonne in November 2025. Despite this, domestic LPG prices for households were reduced by around 22% during the same period, from ₹1,103 in August 2023 to ₹853 in November 2025.

To protect consumers, the effective price of a 14.2 kg domestic LPG cylinder is ₹853 for non-PMUY consumers in Delhi and ₹553 for PMUY beneficiaries, reflecting a 39% reduction for PMUY households compared to August 2023. The government continues to provide a targeted subsidy of ₹300 per cylinder for up to nine refills per year under PMUY, with ₹12,000 crore allocated for FY 2025–26.

While shielding households from global price volatility, OMCs incurred around ₹40,000 crore in losses . To ensure uninterrupted supply and financial stability for OMCs, the government has approved ₹30,000 crore in compensation .

A comparison with neighbouring countries highlights the affordability of domestic LPG: Delhi PMUY beneficiaries pay ₹553 per 14.2 kg cylinder, compared to ₹902 in Lahore (Pakistan) , ₹1,227 in Colombo (Sri Lanka) , and ₹1,205 in Kathmandu (Nepal) .

In addition, CNG and domestic PNG prices have been reduced in select cities , including parts of the Delhi-NCR region. Gas distribution companies have lowered prices by ₹1 per unit , following recent pipeline tariff changes, offering relief to households and transport users while promoting cleaner fuel adoption.

Commercial LPG primarily serves large establishments such as hotels and restaurants , with around 30 lakh users , compared to over 33 crore domestic LPG consumers . Officials emphasized that domestic LPG prices remain stable, underscoring the government’s continued commitment to affordable household energy and clean cooking fuel.

Overall, the government has taken consistent, targeted measures to insulate domestic consumers from global LPG price fluctuations while encouraging the use of clean cooking and transport fuels across the country.