Fuel inflation explained: How changes in petrol, CNG, LPG and PNG prices could affect your household budget

Fuel inflation can affect household budgets differently, depending on the fuel used for cooking and commuting. The latest Finance Ministry report shows how inflation in LPG, PNG, petrol, diesel, and CNG has changed over the last few months. Here’s what the numbers mean for your expenses.

Fuel costs can have a direct bearing on a household’s monthly budget, from cooking gas and PNG to petrol, diesel and CNG used for commuting.

The Ministry of Finance’s Monthly Economic Review for September 2026 highlights how inflation across these fuel categories changed in June, July and August. Here’s what the latest figures mean for household expenses.

What does CPI Inflation show?

The Consumer Price Index (CPI) measures changes in the prices of goods and services that households regularly buy, including food, clothing, fuel, and transport.

Year-on-year (Y-o-Y) inflation shows how prices in a particular month compare with the same month a year earlier.

*Source: Ministry of Finance September 2026 report; For household fuel

What does this mean for your household fuel bill?

LPG and piped natural gas inflation rose from 4.60% in June 2026 to 5.28% in August 2026. This means households using these fuels were paying more, compared with the same period a year earlier.

For example, if an LPG cylinder costs ₹1,000 in August 2026, a 5.28% Y-o-Y inflation rate implies that the comparable price a year earlier was around ₹950. The increase is therefore about ₹50 per cylinder.

However, coal and firewood inflation was higher than LPG inflation in August, at 8.06% and 8.26%, respectively.

Who faces a higher impact from transport fuel inflation?