4 days ago
IGL Raises Delhi CNG Prices Amid West Asia LNG Crisis
Indraprastha Gas Limited supplies CNG to vehicles in Delhi and nearby cities.
It made CNG ₹3.89 more expensive for every kilogram from August 29, 2026.
The company said gas shipped from other countries has become much more expensive.
Fighting and tension in West Asia have disrupted ships using the Strait of Hormuz.
Europe is also buying and storing more gas before winter, creating more competition.
IGL gets about 52% of its gas from imports, so these higher international prices raise its costs.
Delhi’s new CNG price is ₹86.98 per kilogram.
CNG prices also increased in Noida, Ghaziabad, Meerut, and Gurugram.
IGL said the increase would help keep supplies reliable, while household PNG prices did not change.
Indraprastha Gas Limited raised Delhi CNG prices by ₹3.89 per kilogram from 6:00 AM on August 29, 2026.
The revised Delhi price is ₹86.98 per kilogram, while prices rose to ₹95.59 in Noida and Ghaziabad, ₹95.47 in Meerut, and ₹92.01 in Gurugram.
IGL attributed the increase to nearly doubled global spot LNG prices, disrupted Strait of Hormuz cargo movements, and stronger European demand before winter.
Imported gas accounted for about 52% of IGL’s supply during April-June 2026, with procurement costs around ₹40-45 per standard cubic meter.
The Delhi increase was the company’s fifth CNG price hike of 2026; domestic PNG prices were unchanged at ₹49.59 per standard cubic meter.
- Who
- Indraprastha Gas Limited, its CNG customers, and IGL Director (Commercial) Mohit Bhalla.
- What
- IGL increased CNG prices by ₹3.89 per kilogram in Delhi and surrounding cities.
- Where
- Delhi, Noida, Ghaziabad, Meerut, and Gurugram; the cited supply disruption involves the Strait of Hormuz.
- When
- The increase took effect at 6:00 AM on August 29, 2026.
- Why
- IGL said imported LNG costs rose because of West Asia-related cargo disruptions and increased European demand ahead of winter.
IGL’s rationale
Consumer impact
Need for the increase
IGL’s rationale
IGL said the ₹3.89-per-kilogram revision was necessary to partially offset higher imported-gas costs and maintain continuity and reliability of CNG supplies.
Consumer impact
The increase raises fuel costs for private motorists, auto-rickshaw and taxi operators, and public transport users.
Protection from global prices
IGL’s rationale
IGL said Delhi consumers had been largely insulated from the full impact of volatile LNG prices and that Delhi remains among the lowest-priced CNG markets in gas-importing countries.
Consumer impact
The reports note that this was IGL’s fifth Delhi CNG price increase in 2026, indicating repeated increases for consumers.
Key facts
- Delhi CNG price
- ₹86.98 per kilogram after the increase
- Price increase
- ₹3.89 per kilogram
- Effective time
- 6:00 AM on August 29, 2026
- Imported gas share
- Approximately 52% of IGL’s supply during April-June 2026
- Gas procurement cost
- Approximately ₹40-45 per standard cubic meter during the first quarter of 2026-27
- International benchmarks
- Europe’s TTF rose from about $11.36 to $23.35 per MMBtu, while Asia’s JKM rose from about $10.99 to $23.41
- Delhi household PNG price
- ₹49.59 per standard cubic meter, unchanged alongside the CNG revision
Quotes
Indraprastha Gas Ltd
The Delhi-NCR city gas distributor that announced the CNG price revision
“Since July 2026, due to re-escalation of the West Asia crisis affecting LNG cargo movements through the SoH, 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 the approaching winter season.”
thehindubusinessline.com
“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.”
financialexpress.com
Mohit Bhalla
IGL Director (Commercial)
“We are selling around 9.5 million standard cubic meters (MSCM) of gas. So 48 per cent is coming from the domestic (Administered Price Mechanism gas, New Well Gas or High-Pressure High-Temperature gas) and around 52 per cent from the imported.”
thehindubusinessline.com
Sources
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