'LPG most exposed as India imports 65% of needs, CNG prices may rise', warns former GAIL (India) CMD

India could see higher CNG and LPG prices if global energy disruptions persist and liquefied natural gas (LNG) prices remain elevated, according to energy sector veteran Sandeep Kumar Gupta. 

Gupta, former CMD of GAIL (India) Limited and the former Chairman of Mahanagar Gas Limited, said India has some flexibility to manage potential LNG supply disruptions but warned that prolonged geopolitical tensions could still translate into higher fuel costs for consumers. 

Speaking on the impact of global energy turmoil, Gupta told CNBC-TV18 that India could prioritise gas supplies for essential sectors such as piped natural gas (PNG) for households, compressed natural gas (CNG) for transport, and fertiliser production. Industrial consumption of gas could be curtailed if necessary to ensure supplies to priority sectors. 

However, he cautioned that sustained spikes in global spot LNG prices would eventually filter through to domestic fuel prices. 

“If the conflict prolongs and spot LNG prices remain elevated, CNG prices could rise,” Gupta said, highlighting that city gas distributors often rely partly on imported LNG when domestic gas allocations fall short. 

He also warned that liquefied petroleum gas (LPG) remains even more exposed to global supply shocks. India imports roughly 65% of its LPG requirement, with a large share sourced from producers in the Middle East, making the cooking fuel particularly vulnerable to disruptions in the region. 

Any prolonged instability affecting energy flows from West Asia could therefore tighten supplies and push up LPG prices in India, Gupta said.