The price of domestic LPG (14.2 kg cylinder) in India has remained steady at ₹802.50 since March 2024, with no changes recorded in the last month. Over the past year, LPG prices have been on a gradual decline, dropping by ₹100 between October 2023 and September 2024. The most significant decrease was observed in March 2024, when the price was reduced by ₹100.

In India, LPG is a critical household commodity, used mainly for cooking purposes. Almost every home across the country has an LPG connection, making fluctuations in its price a matter of significant concern for the common people. While the current price stability is providing some relief to households, any future increase in prices could have a profound impact on their daily budget. The government has recognized this and provides subsidies to lessen the burden of rising fuel prices.

On the other hand, Compressed Natural Gas (CNG) prices in India are also subject to fluctuations, but they follow a different pricing mechanism. CNG rates are determined by the government and are directly influenced by the global prices of natural gas, which India imports in large quantities. As more Indians switch to CNG vehicles due to environmental concerns and cost efficiency, CNG has become a major player in India’s energy landscape.

LPG Price Trends: Stability Amid Global Volatility

LPG prices in India are determined by state-run oil companies and are revised on a monthly basis. The current rate of ₹802.50 in Mumbai, which has remained unchanged since March 2024, reflects a trend of stability in a volatile global energy market. This period of consistent pricing is notable, especially considering the global fluctuations in fuel prices, which are often driven by changes in crude oil supply and demand, geopolitical factors, and currency exchange rates.

Over the past 12 months, the price of LPG has been gradually decreasing, providing some much-needed relief to consumers. However, LPG price trends are always subject to change, and any future hikes could have a significant impact on household budgets, especially for the middle- and lower-income segments.

To soften the blow of any potential price increases, the government of India offers subsidies to LPG consumers. These subsidies are directly credited to the bank accounts of individuals after they purchase a cylinder. The amount of subsidy varies from month to month, depending on international LPG prices and the foreign exchange rate. This dynamic subsidy mechanism aims to ensure that consumers are not overly burdened by rising fuel costs while keeping in line with global energy price trends.

CNG: The Rise of Green Fuel in India

While LPG remains a staple for household cooking, CNG (Compressed Natural Gas) is fast gaining popularity as a cleaner and cheaper alternative for vehicles. The pricing of CNG, like LPG, is also influenced by global factors, as India imports more than half of its natural gas requirements. The government revises CNG prices based on the international rates of natural gas, and any rise or fall in global prices has a direct effect on domestic rates.

CNG is seen as a more environmentally friendly fuel option compared to petrol and diesel, and with increasing environmental awareness, more and more Indians are transitioning to CNG-enabled vehicles. This shift is part of a broader movement towards reducing pollution and making transportation more sustainable.

Despite the global dependency on imported natural gas, CNG remains a cost-effective alternative for vehicle owners. However, as with LPG, the pricing of CNG can fluctuate, making it important for consumers to stay informed about potential price changes that could affect their fuel expenses.

Government's Role in Price Management

The Indian government plays a crucial role in managing both LPG and CNG prices, ensuring that consumers are not hit too hard by global energy price hikes. For LPG, the government provides direct subsidies to households, helping to maintain affordability. For CNG, the government’s pricing policies aim to balance international market dynamics with domestic demand, promoting the use of cleaner fuels like CNG.

As India continues to move towards a greener, more sustainable energy future, both LPG and CNG will remain important components of the country’s energy mix. While LPG supports daily household needs, CNG offers a cleaner alternative for transportation, helping India reduce its carbon footprint.