CNG Price Hike: Delhi Rates Jump Rs 3.89 to Now Cost Rs 86.98 Per Kg, says Indraprastha Gas Limited

New Delhi: Indraprastha Gas Limited (IGL) has announced a steep revision in the retail price of compressed natural gas (CNG) in the national capital. On Friday, the city gas distributor announced that CNG in Delhi will cost Rs 3.89 more per kg, attributing the move to a sharp rise in international LNG prices due to the ongoing crisis in West Asia.

The new tariff will be implemented from 6 am on Saturday, following which the retail price of CNG in Delhi will move up from Rs 83.09 per kg to Rs 86.98 per kg, adding to the fuel expenses of lakhs of motorists and public transport operators.

According to the company, the hike has become unavoidable as a substantial share of gas used for the CNG segment is procured from imported spot LNG, the prices of which have turned highly volatile due to disruptions in cargo movements through the Strait of Hormuz following the re-escalation of the West Asia situation.

International Gas Prices Surge Sharply

In a press note, the IGL explained that global LNG prices have nearly doubled since July. The company noted that European TTF gas prices climbed from around USD 11.36 per MMBTU in late February to about USD 23.35 per MMBTU by August 27, registering a jump of nearly 105%.

Similarly, Asian JKM LNG prices rose from around USD 10.99 per MMBTU to USD 23.41 per MMBTU during the same period, registering an increase of around 113%. On the other hand, the IGL pointed out that Delhi’s CNG retail price had only moved from Rs 77.09 per kg to Rs 83.09 per kg in that window, an increase of around 7.8%.

The company attributed the global surge not only to uncertainty around shipments via the Strait of Hormuz but also to heightened demand for building natural gas storage in Europe ahead of the winter season.

Calibrated Increase Amid Rising Demand

The IGL stated that consumers in Delhi had largely been safeguarded from the volatility in imported spot LNG despite the dramatic rise in global rates. “Despite soaring imported spot gas prices, CGD entities like IGL have been maintaining very competitive CNG prices vis--vis other alternative fuels,” the company said.

The distributor added that CNG consumption has grown significantly in line with India’s economic expansion and rising consumer demand, which has further increased the need for imported gas. Calling the latest revision a calibrated move, the IGL asserted that it was to partially offset higher input costs while ensuring continuity and reliability of supply.

Delhi CNG Remains Competitive

The IGL maintained that even after the revision, Delhi’s CNG continues to be among the most economical choices for consumers when compared to alternative fuels. The company reiterated its commitment to keeping the fuel affordable and clean. 

“IGL remains committed to maintaining CNG as a competitive, cleaner and dependable mobility fuel and will continue making every possible effort to optimize its sourcing cost in the interest of consumers,” the gas distributor said.

The IGL operates the city gas distribution network across Delhi, several parts of the National Capital Region (NCR) and other cities. The firm's infrastructure spans over 30,000 km of pipelines and includes over 1000 CNG stations, supplying fuel to over 2.1 million vehicles and piped natural gas to nearly 3.5 million households across its operational areas.