Millions of households could get relief from rising fuel costs as the government prepares to cut prices of CNG and PNG from January 1, 2026. While CNG is used in vehicles and PNG is supplied to homes via pipelines, domestic LPG cylinder prices may also see a reduction.
CNG and PNG Prices to Drop
The government has announced a reduction of ₹2-3 per unit in CNG and PNG rates starting January 1, 2026. This move is expected to ease the financial burden on consumers during the new year.
LPG Cylinders Likely to Follow
Domestic 14.2 kg LPG cylinders have not seen a price revision since March 9, 2024. Currently, prices for unsubsidized cylinders are:
- Delhi: ₹803
- Kolkata: ₹879
- Mumbai: ₹852.50
- Chennai: ₹868.50
Beneficiaries of the Ujjwala scheme receive a subsidy of ₹300 per cylinder (up to 9 cylinders annually), making the effective price ₹503 in Delhi. Commercial cylinders (19 kg) are priced higher:
- Delhi: ₹1,580.50
- Kolkata: ₹1,684
- Mumbai: ₹1,531.50
- Chennai: ₹1,739.50
Falling Crude Oil Prices Support Reduction
Crude oil prices have dropped significantly to around $60 per barrel, the lowest since 2021. According to Oilprice.com, Brent Crude is trading at $60.22 per barrel. The decline is due to increased supply and flat demand. Over the year, crude has fallen 21%, marking its worst performance since 2020.
Impact on LPG and Other Petroleum Products
Crude oil is refined into various hydrocarbons, including petrol, diesel, and LPG. The recent drop in crude prices improves refinery margins, which could translate into lower prices for consumers. Analysts indicate that significant crude price surges are unlikely in the coming year, increasing the possibility that LPG cylinders may become cheaper soon.
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