Compressed natural gas (CNG) prices have increased by ₹3.89 per kg across Delhi-NCR and other geographical areas supplied by Indraprastha Gas Ltd (IGL), with the revised rates taking effect from 6 am on August 29, 2026. In Delhi, the price has risen from ₹83.09 to ₹86.98 per kg. IGL said the increase was necessary to partially offset a sharp rise in the cost of imported liquefied natural gas (LNG), as the continuing West Asia crisis has disrupted global gas markets and increased import costs.
The latest increase is the fifth CNG price hike in Delhi-NCR this year and the first since May, when IGL raised rates by a cumulative ₹6 per kg in four stages. The new prices are likely to affect private motorists, auto-rickshaw drivers, taxis, buses and other commercial transport operators that depend heavily on CNG. Domestic PNG prices in Delhi, however, remain unchanged at ₹49.59 per standard cubic metre (SCM).
CNG Prices Rise By ₹3.89 Per Kg
IGL announced the latest price revision on Friday, citing elevated international LNG prices and a growing cost burden on the company’s CNG input gas.
The revised rates became effective at 6 am on Saturday, August 29. The increase applies across IGL’s geographical areas, although the final retail price differs between cities because of factors including state taxes and local pricing structures.
New CNG Prices In Delhi-NCR
| City | Previous Price | New Price | Increase |
|---|---|---|---|
| Delhi | ₹83.09/kg | ₹86.98/kg | ₹3.89 |
| Noida | ₹91.70/kg* | ₹95.59/kg | ₹3.89 |
| Ghaziabad | ₹91.70/kg* | ₹95.59/kg | ₹3.89 |
| Meerut | ₹91.58/kg* | ₹95.47/kg | ₹3.89 |
| Muzaffarnagar | ₹91.58/kg* | ₹95.47/kg | ₹3.89 |
| Gurugram | ₹88.12/kg* | ₹92.01/kg | ₹3.89 |
| Rewari | ₹87.70/kg* | ₹91.59/kg | ₹3.89 |
| Karnal | ₹87.43/kg* | ₹91.32/kg | ₹3.89 |
| Kaithal | ₹88.43/kg* | ₹92.32/kg | ₹3.89 |
*Previous prices calculated by subtracting the ₹3.89 increase from IGL’s revised rates.
The revised rate in Delhi represents an increase of about 4.7% over the previous ₹83.09 per kg price.
Why Has CNG Become More Expensive?
IGL has attributed the increase primarily to higher international LNG prices.
A significant portion of the gas used for CNG is sourced from imported LNG, exposing the domestic CNG market to international energy prices. The West Asia crisis has disrupted LNG cargo movements through the Strait of Hormuz, contributing to a sharp rise in spot LNG prices.
IGL said international LNG prices have remained elevated and that the resulting increase in input costs has become significant enough to require a “calibrated revision” in CNG prices.
Main Factors Behind The CNG Hike
| Factor | Impact |
|---|---|
| West Asia conflict | Increased energy-market uncertainty |
| Strait of Hormuz disruption | Disrupted LNG cargo movements |
| Spot LNG prices | Nearly doubled from pre-crisis levels |
| Imported gas dependence | Raises CNG input costs |
| Rising CNG demand | Increased requirement for imported spot LNG |
| European gas demand | Winter storage buying adds market pressure |
The company said the combination of rising demand and higher imported spot LNG costs has increased the cost of supplying CNG.
Global LNG Prices Have Nearly Doubled
The latest increase comes against an unusually sharp move in international natural gas prices.
According to IGL’s explanation, global LNG prices have nearly doubled since July as the renewed West Asia crisis affected cargo movements through the Strait of Hormuz.
European demand is also adding pressure because countries are seeking to build natural-gas inventories ahead of the winter season.
International Gas Price Movement
| Benchmark | Pre-Crisis Level | Recent Level | Approx. Increase |
|---|---|---|---|
| Europe TTF | ~$11.36/MMBtu | ~$23.35/MMBtu | ~105% |
| Asia JKM LNG | ~$10.99/MMBtu | ~$23.41/MMBtu | ~113% |
| Delhi CNG | ₹77.09/kg | ₹86.98/kg | ~12.8% |
The comparison shows that domestic CNG prices have increased much less than international LNG benchmarks so far. IGL has emphasized that consumers have been partly insulated from the full increase in global gas costs.
Delhi CNG Price Has Increased Five Times In 2026
The August 29 increase is the fifth CNG price hike in Delhi-NCR this year.
The previous major revision came in May, when IGL raised CNG prices by a cumulative ₹6 per kg in four stages over a 10-day period. That increase was also attributed to higher global energy prices linked to the West Asia conflict.
Delhi CNG Price Trend In 2026
Earlier 2026 rate
₹77.09/kg
│
▼
May 2026
+₹6 in multiple stages
│
▼
₹83.09/kg
│
▼
August 29, 2026
+₹3.89/kg
│
▼
₹86.98/kg
From ₹77.09 per kg earlier in the year to ₹86.98 currently, Delhi CNG has increased by ₹9.89 per kg, or approximately 12.8%.
That cumulative increase is considerably more relevant for high-frequency CNG users than the latest ₹3.89 adjustment alone.
Impact On Auto And Taxi Drivers
CNG is widely used by commercial vehicles in Delhi-NCR, including auto-rickshaws, taxis, app-based cabs and buses.
For commercial drivers, fuel is one of the largest recurring operating expenses. Even a relatively small per-kilogram increase can materially affect monthly costs when vehicles travel long distances every day.
Illustrative Monthly Fuel Impact
Assuming a vehicle consumes 10 kg of CNG per day:
| Daily CNG Use | Extra Daily Cost | Extra Monthly Cost* |
|---|---|---|
| 5 kg | ₹19.45 | ₹583.50 |
| 10 kg | ₹38.90 | ₹1,167 |
| 15 kg | ₹58.35 | ₹1,750.50 |
| 20 kg | ₹77.80 | ₹2,334 |
| 25 kg | ₹97.25 | ₹2,917.50 |
| 30 kg | ₹116.70 | ₹3,501 |
*Calculated for 30 days and based only on the latest ₹3.89/kg increase.
Commercial vehicles covering significantly longer distances could therefore face several thousand rupees of additional fuel expense each month.
Drivers may attempt to recover part of the increase through higher fares, but the extent to which this is possible depends on competition and local fare regulations.
Private Car Owners Also Face Higher Costs
The impact on private motorists will generally be smaller because daily CNG consumption is lower than that of commercial vehicles.
For example, a car consuming 5 kg of CNG per day would incur an additional ₹19.45 in daily fuel expense because of the latest increase.
For a driver using 5 kg per day over 25 days, the monthly increase would be about ₹486.
Household / Private Vehicle Impact
| Daily Consumption | 25-Day Extra Cost |
|---|---|
| 2 kg | ₹194.50 |
| 3 kg | ₹291.75 |
| 5 kg | ₹486.25 |
| 7 kg | ₹680.75 |
| 10 kg | ₹972.50 |
These are illustrative calculations based on the ₹3.89-per-kg increase and do not represent actual monthly fuel consumption for every vehicle.
CNG Remains Cheaper Than Petrol For Many Users
Despite the latest increase, CNG continues to have a cost advantage for many vehicle owners compared with petrol on a per-kilometer basis, depending on vehicle efficiency and local fuel prices.
This is one reason CNG remains popular among taxis, auto-rickshaws and other high-mileage vehicles.
However, the advantage can narrow when CNG prices rise rapidly while petrol prices remain comparatively stable.
For commercial operators, the decision to continue using CNG depends not only on the fuel price but also on vehicle mileage, maintenance costs, availability of filling stations and the economics of switching to electric vehicles.
PNG Prices Remain Unchanged
The latest revision applies to CNG and does not involve a corresponding increase in domestic piped natural gas (PNG) prices.
IGL’s current domestic PNG price in Delhi remains ₹49.59 per SCM. Prices in neighboring cities vary.
Current IGL PNG Prices
| Location | Domestic PNG Price |
|---|---|
| Delhi | ₹49.59/SCM |
| Noida | ₹49.46/SCM |
| Greater Noida | ₹49.46/SCM |
| Ghaziabad | ₹49.46/SCM |
| Gurugram | ₹48.40/SCM |
| Karnal | ₹46.40/SCM |
| Muzaffarnagar | ₹48.35/SCM |
| Meerut | ₹48.35/SCM |
This means households using PNG for cooking and other domestic applications do not face an immediate increase from the August 29 announcement.
Why Imported LNG Matters For India
India’s natural-gas market uses a combination of domestically produced gas and imported LNG.
When domestic supplies are insufficient to meet demand, LNG is imported, converted back into gas and supplied to different sectors.
CNG distributors therefore face an important cost-management challenge when imported spot LNG becomes significantly more expensive.
The current crisis demonstrates how geopolitical events thousands of kilometers away can affect the fuel bills of Indian consumers.
Global Crisis To Delhi CNG
West Asia conflict
│
▼
Strait of Hormuz disruption
│
▼
LNG cargo movement affected
│
▼
Global spot LNG prices rise
│
▼
Imported gas becomes costlier
│
▼
CNG input cost increases
│
▼
IGL raises CNG price
│
▼
Consumers pay ₹3.89/kg more
The transmission mechanism is particularly important because the price increase is not primarily the result of a domestic shortage of CNG stations or a local tax change.
Rising CNG Demand Is Adding Pressure
IGL also pointed to stronger CNG consumption.
The company said CNG demand is rising alongside India’s economic growth and increasing consumer demand. Because a significant portion of the additional requirement is being met through imported spot LNG, stronger consumption is increasing exposure to international prices.
This creates a difficult situation for gas distributors: demand is increasing at the same time that the marginal cost of meeting that demand is rising.
If international LNG prices remain elevated, additional CNG price adjustments cannot be ruled out.
What The Hike Means For Inflation
The direct impact of the latest CNG increase on India’s headline inflation is likely to be limited because CNG represents only one component of the overall consumer basket.
However, CNG is an important input for transportation.
Higher fuel costs can eventually affect the cost of taxis, autos, delivery services and other transportation-dependent businesses. These businesses may pass some of the increase to consumers.
The indirect impact therefore depends on how long international LNG prices remain elevated and whether commercial operators adjust fares.
The Bigger Picture
The ₹3.89-per-kg CNG increase in Delhi-NCR is another example of how the West Asia crisis is transmitting through global energy markets into Indian household and transportation costs. IGL says a significant portion of CNG input gas is sourced from imported LNG, while spot LNG prices have risen sharply because of disruptions to cargo movements through the Strait of Hormuz.
For consumers, the latest increase takes Delhi CNG to ₹86.98 per kg and brings the cumulative increase from the earlier 2026 level of ₹77.09 to ₹9.89 per kg. Commercial drivers are likely to feel the largest impact because of their high daily fuel consumption. However, the increase also shows that India’s transition toward cleaner transportation fuels remains exposed to international gas markets when domestic supply is insufficient to meet rising demand.
Looking Ahead
The immediate outlook for CNG prices will depend on global LNG prices, the duration of the West Asia crisis and the extent to which LNG cargo movements through the Strait of Hormuz normalize. If imported spot LNG remains expensive, gas distributors could continue facing pressure to revise retail prices. For now, IGL has passed only part of the higher input cost through to CNG consumers, while keeping domestic PNG prices unchanged.
For Delhi-NCR motorists and commercial transport operators, the latest ₹3.89 increase adds to a cumulative rise of ₹9.89 per kg since earlier this year. Auto and taxi drivers are likely to monitor whether the higher fuel cost leads to fare adjustments, while private vehicle owners may reassess the savings offered by CNG compared with petrol. The longer-term trajectory will ultimately depend on both international gas prices and India’s ability to expand reliable domestic and alternative gas supplies.
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