PNG Price in India: Why Cooking Gas Rates Haven’t Risen Despite Middle East Tensions
PNG Price in India: Why Cooking Gas Rates Haven’t Risen Despite Middle East Tensions
Despite a sharp rise in global natural gas prices amid heightened tensions in the Middle East, domestic consumers in India have largely been shielded from a major increase in Piped Natural Gas (PNG) prices. The government has attributed this stability to timely policy decisions and special gas allocation measures aimed at limiting the impact of international price volatility on households.
According to information provided by the Ministry of Petroleum and Natural Gas in Parliament, the price of gas supplied for domestic PNG has been fixed at $7 per MMBtu for the financial year 2026-27.
The government said it has also allocated additional domestic gas to meet rising demand for PNG in cities. Gas allocation was reportedly increased to 105% of actual consumption recorded during the previous quarter. The measure is intended to ensure adequate availability while reducing pressure on retail prices.
Domestic PNG Gets Priority
Under the Natural Gas (Allocation) Order, 2016, domestic PNG has been included among the priority sectors for natural gas allocation. CNG, LPG production and the fertiliser sector have also been accorded priority to ensure that essential services and consumers are not severely affected by fluctuations in gas availability.
The government has said that special arrangements can be withdrawn once the gas supply situation returns to normal.
Why PNG Prices Differ Across Cities
The government has also clarified that PNG prices are not uniform across India. Retail rates can vary from one city to another due to several factors, including the cost of procuring natural gas, pipeline transportation charges, state taxes, subsidies and expenses incurred by city gas distribution companies.
As a result, while PNG may be cheaper than LPG in certain areas, the price difference between the two fuels can vary considerably depending on the city.
PNG Network Expanding Across India
Meanwhile, the government continues to expand the City Gas Distribution network across the country. Authorisation for developing city gas networks has been granted in 683 districts across 309 geographical areas, according to the information cited in the report.
As of May 31, 2026, more than 1.70 crore domestic PNG connections had been provided across India, while around 6.71 lakh inch-kilometres of pipeline had been laid.
The government has also launched the National PNG Drive 2.0, focusing on digital registration, easier connection procedures and public awareness to encourage more households to switch to PNG.
