India's Energy Prices Rise Amid Geopolitical Tensions
The prices of LPG (Liquefied Petroleum Gas), CNG (Compressed Natural Gas), and PNG (Piped Natural Gas) have increased in India. According to recent data, Delhi's CNG price has risen by nearly ₹10 per kg this year, from ₹77.09 per kg in January. The prices of these fuels vary across states due to local VAT (Value Added Tax) and taxes.
The government aims to diversify its energy sources and cut subsidy expenditure. To achieve this, an incentive scheme has been approved for city gas distributors to increase domestic PNG connections from September 1, 2026. This move is expected to shift the focus from LPG to piped gas.
India is also turning more sharply to the United States for LPG and LNG (Liquefied Natural Gas) supplies due to disruptions in West Asia. The tensions between the US and Iran have escalated, with both countries exchanging attacks on Tuesday. This has added a fresh geopolitical risk premium to crude markets, pushing oil prices higher.