CNG Price Hiked ₹3.89 Per Kg In Delhi, Adjoining Cities As Global LNG Costs Surge

Indraprastha Gas Ltd (IGL) on Saturday raised the price of compressed natural gas (CNG) in Delhi by ₹3.89 per kg, citing a sharp rise in international LNG prices following a renewed West Asia crisis and disruptions to gas cargo movements through the Strait of Hormuz.

The hike, effective from 6 am on August 29, takes the CNG price in Delhi to ₹86.98 per kg, from ₹83.09 per kg earlier.

The increase takes the cumulative increase in Delhi CNG prices this year to nearly ₹10 per kg. Delhi CNG was priced at ₹77.09 per kg at the beginning of the year. It was raised by ₹6 per kg in four installments in second half of May, taking the price to ₹83.09 per kg before Saturday's hike.

Prices have also been increased in adjoining cities like Noida and Ghaziabad. CNG now costs ₹95.59 per kg in Noida, ₹95.59 in Ghaziabad and ₹92.01 per kg in Gurugram.

Rates differ from state to state depending on local taxes like VAT.

Price of natural gas piped to household kitchens for cooking remains unchanged at ₹49.59 per standard cubic meters in Delhi.

In a statement, IGL said the increase comes after Delhi CNG prices had remained relatively stable despite a sharp rise in international gas benchmarks during the earlier phase of the Hormuz crisis.

IGL said global LNG prices have nearly doubled since July as the renewed crisis has affected LNG cargo movements through the strategic waterway.

"Despite soaring imported spot gas prices, CGD entities like IGL have been maintaining very competitive CNG prices vis-a-vis other alternative fuels for enabling sustained growth of CNG consumption in India," IGL, which retails CNG to automobiles and piped cooking gas to households in Delhi and adjoining cities, said.

"CNG consumers (private cars, auto and taxi, public transport users and other price-sensitive sections of society) are largely being insulated from the impact of volatile increases in imported spot LNG prices. Among gas importing countries like ours, Delhi has one of the lowest CNG retail prices in the world." IGL said since July, the re-escalation of the West Asia crisis has affected LNG cargo movements through the Strait of Hormuz, pushing global LNG prices to nearly twice their pre-crisis levels. At the same time, European countries are seeking to build up natural gas inventories ahead of winter, adding to demand pressure.

"Since July, 2026, due to re-escalation of West Asia crisis affecting LNG cargo movements through the Strait of Hormuz, the Global LNG prices have nearly doubled as compared to pre-crisis period. Additionally, there is an urgency in Europe to increase their natural gas storage on account of approaching winter season." The company said rising CNG consumption, in line with India's economic growth and increasing consumer demand, has also increased the requirement for imported spot LNG.

"In these challenging times, CNG consumption is also witnessing significant jump in line with fast growing Indian economy and surging consumer demand. In order to meet this rising demand for CNG, a significant portion of input gas for the CNG segment is being met through imported Spot LNG. Above factors have resulted in a considerable increase in input gas cost for CNG segment." IGL said the latest increase was required to partly offset the higher input gas cost while ensuring uninterrupted supplies.

"With international LNG prices remaining elevated and the cost impact becoming increasingly significant, a calibrated revision of ₹3.89 per kg has now become necessary to partially offset the increase in input gas cost while ensuring continuity and reliability of CNG supplies. Even after this revision in CNG prices being effected from 6 am on 29th Aug 2026, CNG retail price in Delhi continues to be amongst the most economical option for consumers." The latest hike takes the cumulative increase in Delhi CNG prices this year to nearly ₹10 per kg.

Delhi CNG was priced at ₹77.09 per kg at the beginning of the year. It was raised by ₹2 per kg on May 15, followed by increases of Re 1 per kg on May 17, Re 1 per kg on May 23 and ₹2 per kg on May 26, taking the price to ₹83.09 per kg before Saturday's hike.

IGL said the movement in retail CNG prices has been much lower than the increase in international gas benchmarks.

"Delhi's CNG retail price remained more or less stable during the Hormuz crisis while International Gas Benchmarks (Europe's TTF and Asia's JKM) rose sharply during the same period." According to data provided by IGL, between late February and August 27, the Delhi CNG price rose around 7.8 per cent, from ₹77.09 per kg to ₹83.09 per kg. Over the same period, the European TTF gas benchmark rose around 105 per cent to about USD 23.35 per MMBtu from USD 11.36, while the Asian JKM LNG benchmark climbed around 113 per cent to USD 23.41 per MMBtu from USD 10.99.

IGL said it remains focused on keeping CNG competitive despite elevated international gas costs.

"IGL remains committed to maintain CNG as a competitive, cleaner and dependable mobility fuel and will continue making every possible effort to optimise its sourcing cost in the interest of consumers." IGL operates city gas distribution networks across Delhi, Noida, Greater Noida, Ghaziabad, Hapur, Rewari, Gurugram, Karnal, Kaithal, Fatehpur, Ajmer, Pali, Rajsamand, Hamirpur, Shamli, Muzaffarnagar, Banda, Chitrakoot, and Mahoba, besides parts of Kanpur and Meerut.

The company has more than 30,000 km of pipeline network and over 1,000 CNG stations, supplying fuel to more than 2.1 million CNG vehicles. It has also connected nearly 3.5 million households to piped natural gas (PNG).