Indraprastha Gas Ltd increased the price of compressed natural gas in Delhi by Rs 3.89 per kg, bringing the new rate to Rs 86.98 per kg.
The revised rates, effective from Saturday, August 29, 2026, will increase operating expenses for private and commercial CNG vehicles in the National Capital Region.
Geopolitical tensions in West Asia and shipping disruptions in the Strait of Hormuz have forced the distributor to rely on expensive spot LNG imports.
North India's largest city-gas distributor Indraprastha Gas Ltd (IGL) informed late on Friday that it will raise the price of compressed natural gas by Rs 3.89 per kg. The new rate comes into effect at 6 am on Saturday, August 29, 2026.
The revised CNG price in Delhi will stand at Rs 86.98 per kg, up from Rs 83.09 per kg.
This price adjustment will directly drive up operating expenses for private cars, taxis and commercial vehicles running on CNG across Delhi and the National Capital Region.
Global Supply Pressures
Renewed hostilities in West Asia have interrupted shipping routes through the Strait of Hormuz. This geopolitical tension has forced the city-gas distributor to rely heavily on expensive spot LNG purchases to satisfy local demand.
Explaining the volatile market dynamics, IGL stated: "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 approaching winter season."
The imported nature of the input fuel leaves its pricing highly exposed to international fluctuations.
IGL informed: "With international LNG prices remaining elevated and the cost impact becoming increasingly significant, a calibrated revision of Rs 3.89 per kg has now become necessary to partially offset the increase in input gas cost while ensuring continuity and reliability of CNG supplies."
Cumulative Price Impact
The Friday price adjustment marks the fifth increase in CNG rates since the onset of the West Asia conflict.
Before this latest announcement, compressed natural gas rates across multiple northern Indian cities had already recorded a cumulative jump of Rs 6 per kg. This previous escalation occurred in four phases beginning May 15.
