City gas distributor Indraprastha Gas Ltd (IGL) on Saturday announced a 4.6 per cent increase in compressed natural gas (CNG) prices across its geographical areas, citing a surge in spot input gas prices.
Following the increase, CNG will be priced at Rs 86.98 per kilogram (kg) in Delhi.
“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 while ensuring continuity and reliability of CNG supplies. Even after this revision in CNG prices being effected from 6 AM on 29th Aug 2026, CNG retail price in Delhi continues to be amongst the most economical option for consumers,” the company said in a statement.
IGL added that despite soaring imported spot gas prices, city gas distribution (CGD) entities such as IGL had maintained competitive CNG prices compared with alternative fuels, supporting sustained growth in CNG consumption in India.
The company said CNG consumers, including private car owners, auto and taxi operators, public transport users and other price-sensitive sections, had largely been insulated from volatile increases in imported spot LNG prices.
Among gas-importing countries, Delhi has one of the lowest CNG retail prices in the world, IGL said.
Since July 2026, the re-escalation of the West Asia crisis and its impact on LNG cargo movements through the Strait of Hormuz have led to global LNG prices nearly doubling compared with pre-crisis levels, according to the company.
IGL added that Europe was also facing urgency to increase natural gas storage ahead of the winter season.
“In these challenging times, CNG consumption is also witnessing significant jump in line with fast growing Indian economy and surging consumer demand. In order to meet this rising demand for CNG, a significant portion of input gas for the CNG segment is being met through imported Spot LNG. Above factors have resulted in a considerable increase in input gas cost for CNG segment,” IGL said.
The company added that Delhi’s CNG retail price had remained more or less stable during the Hormuz crisis even as international gas benchmarks, including Europe’s TTF and Asia’s JKM, rose sharply over the same period.
IGL operates city gas distribution infrastructure in Delhi, Noida, Greater Noida, Ghaziabad, Hapur, Rewari, Gurugram, Karnal, Kaithal, Fatehpur, Ajmer, Pali, Rajsamand, Hamirpur, Shamli, Muzaffarnagar, Banda, Chitrakoot and Mahoba, as well as parts of Kanpur and Meerut.
Its network comprises more than 30,000 km of pipelines. The company meets the fuel requirements of over 2.1 million vehicles running on CNG through a network of more than 1,000 CNG stations and has connected nearly 3.5 million households with piped natural gas (PNG).
