Delhi CNG price rises by Rs 3.89 per kg as IGL cites global LNG cost surge

Indraprastha Gas Ltd (IGL) has increased the price of compressed natural gas (CNG) in Delhi by Rs 3.89 per kg, citing a sharp rise in international liquefied natural gas (LNG) prices amid renewed tensions in West Asia and disruptions to gas shipments through the Strait of Hormuz.

The revised price came into effect at 6 am on August 29, taking CNG in Delhi to Rs 86.98 per kg from the earlier Rs 83.09.

The latest increase takes the total rise in Delhi's CNG price this year to nearly Rs 10 per kg. CNG was priced at Rs 77.09 per kg at the start of 2026. The rate was subsequently increased by Rs 6 per kg through four hikes in May, reaching Rs 83.09 before Saturday's revision.

CNG prices have also increased in neighbouring cities. The fuel now costs Rs 95.59 per kg in both Noida and Ghaziabad, while the rate in Gurugram stands at Rs 92.01 per kg. Prices vary across locations due to differences in local taxes, including VAT.

The price of piped natural gas (PNG) supplied to households in Delhi for cooking remains unchanged at Rs 49.59 per standard cubic metre.

IGL said international LNG prices have nearly doubled since July compared with pre-crisis levels, as the renewed West Asia conflict has disrupted LNG cargo movement through the Strait of Hormuz. Rising European demand for gas storage ahead of winter has added further pressure on global prices.

The company said growing CNG consumption in India has also increased the requirement for imported spot LNG, a significant portion of which is used to meet demand in the CNG segment.

IGL said the latest Rs 3.89 per kg increase was necessary to partially absorb higher input costs while maintaining reliable supplies.

The company also pointed out that Delhi's CNG prices have risen far less than international gas benchmarks. Between late February and August 27, Delhi's CNG price rose about 7.8 per cent, while Europe's TTF benchmark increased about 105 per cent and Asia's JKM LNG benchmark rose around 113 per cent.

IGL said it would continue efforts to keep CNG affordable and competitive despite elevated international gas prices.

with inputs from PTI