IGL Raises CNG Prices in Delhi-NCR by Rs 3.89 Amid Rising LNG Costs

Shillong, India Aug 29, 2026 ALN: Indraprastha Gas Limited (IGL) has announced an increase in compressed natural gas (CNG) prices by Rs 3.89 per kg across the Delhi-National Capital Region (NCR), attributing the hike to a significant rise in the costs associated with imported liquefied natural gas (LNG). This adjustment will take effect starting Saturday, with the new price for CNG in Delhi set at Rs 86.98 per kg. The revised rates in nearby areas include Rs 95.59 per kg in Noida and Ghaziabad, Rs 95.47 per kg in Meerut, and Rs 92.01 per kg in Gurugram.

This latest price increase marks the fifth adjustment to CNG prices by IGL in 2023 and is the first hike since May. In that month, the company had implemented a cumulative increase of Rs 6 per kg over a series of four phases within a span of ten days. The price adjustments were largely driven by escalating global energy prices, which were influenced by ongoing conflicts in West Asia that have affected energy supply chains.

The current increase comes amid rising international LNG prices, which have surged due to renewed tensions in West Asia, particularly affecting cargo movements through the strategically important Strait of Hormuz. This strait is a critical passageway for a significant portion of the world’s oil and gas supply, and any disruptions can lead to increased uncertainty and volatility in energy markets. Reports indicate that global LNG prices have nearly doubled since July compared to the levels observed prior to the escalation of these conflicts.

The Asia-JKM LNG benchmark, which serves as a key indicator for spot LNG prices in Asia, has seen a dramatic increase, rising from approximately $11 per million British thermal units (MMBTU) in February to $23.4 per MMBTU in August. Similarly, European TTF gas prices have mirrored this trend, escalating from around $11.3 per MMBTU to $23.3 per MMBTU during the same timeframe. This sharp increase in LNG prices has raised concerns among consumers and businesses that rely on gas for their operational needs.

Furthermore, the pressure on global gas prices has been exacerbated by preparations for the upcoming winter season in Europe. European countries are actively building up their LNG inventories to prepare for the anticipated higher seasonal demand for heating and energy. This strategic stockpiling has intensified competition for available LNG cargoes, further driving prices upwards and impacting markets worldwide.

The increase in CNG prices is expected to have a ripple effect on transportation costs throughout the Delhi-NCR region, where a significant number of auto-rickshaws, taxis, and commercial vehicles operate on CNG. Historically, previous increases in fuel prices have resulted in higher freight and passenger fares, leading to increased costs for consumers and businesses alike. This situation raises concerns about the potential for inflationary pressures in the region, particularly for low-income households that may be disproportionately affected by rising transportation costs.

It is also important to note that CNG prices vary across different cities due to differences in state-level value-added tax (VAT) structures. As a result, the latest price hike comes at a time when transport operators are already grappling with increased fuel and operating costs, which could further strain their profit margins and operational viability.

The ongoing rise in international gas prices suggests that domestic CNG prices may continue to face upward pressure in the months ahead, especially if geopolitical tensions persist and the global LNG market remains tight. Analysts and industry experts are closely monitoring these developments, as they could have significant implications for energy policy, consumer behavior, and the overall economic landscape in the region.

In summary, the recent price hike by IGL reflects the broader trends in global energy markets and highlights the interconnectedness of geopolitical events and domestic fuel pricing. As consumers and businesses navigate this changing landscape, the implications of rising CNG prices will likely be felt across various sectors, prompting discussions about energy sustainability, pricing strategies, and the future of transportation in the Delhi-NCR region.