Tuesday, 02 January 2024 12:17 GMT

Bad News For CNG Users In Delhi! Price Hiked By ₹3.89 Per Kg: Check New Rate Here Know What Led To The Increase


(MENAFN- Live Mint) The price of Compressed Natural Gas (CNG) was hiked by ₹3.89 per kg in Delhi. The new rates will be effective from 6:00 am on Saturday, August 29, according to a press release by Indraprastha Gas Limited (IGL).

Check new Delhi CNG rates here

With an increase of ₹3.89 per kg, CNG in Delhi will now cost ₹86.98 per kg, up from ₹83.09 per kg. CNG is mostly used in private cars, autos, taxis, and other public transport.

"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," IGL said, adding that the revision in CNG prices is being effected from 6 am on Saturday.

CNG Retail Prices (w.e.f 6:00 AM of 29th August 2026)

According to the company, while international gas benchmarks doubled over recent months, retail prices in Delhi experienced only a minor single-digit percentage increase.

Delhi CNG (IGL Retail) rose gradually from ₹77.09/kg to ₹83.09/kg, representing a modest ~7.8% increase.

Also Read | Driving a CNG car in Noida? This certificate is now required for refuelling

Europe (TTF Gas Benchmark) escalated from ~$11.36/MMBTU to ~$23.35/MMBTU, marking a massive surge of ~105%.

Asia (JKM LNG Benchmark) jumped from ~$10.99/MMBTU to $23.41/MMBTU, reflecting a sharp rise of ~113%.

Any change in domestic PNG prices?

Domestic PNG retail price in Delhi remains unchanged at ₹49.59/- per SCM.

Why the price hike?

The adjustment comes as global Spot LNG prices nearly double due to escalating conflicts in West Asia, disrupting LNG cargo movements through the Strait of Hormuz, alongside rising European demand ahead of the winter season.

CNG consumers are largely being insulated from the impact of volatile increases in imported spot LNG prices amid the West Asia crisis, according to the IGL press release. It notes that amongst gas-importing countries such as India, Delhi has one of the lowest CNG retail prices in the World.

Also Read | India expands LNG sourcing to 15, crude oil to 41 countries amid risks

"Since July'2026, due to re-escalation of West Asia crisis affecting LNG cargo movements through the Strait of Hormuz, 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 approaching winter season," the IGL said.

The company added that in these challenging times,“CNG consumption is also witnessing significant jump in line with fast growing Indian economy and surging consumer demand.”

Also Read | India secures LNG supplies till September amid fresh escalation in West Asia war

“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.

Fast-paced economic growth and rising consumer demand have increased reliance on imported Spot LNG to meet the CNG supply gap.

IGL reaffirmed its commitment to optimising sourcing costs to keep CNG an economical, clean, and dependable fuel choice for auto-rickshaws, taxis, private vehicles, and public transport fleets.

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Live Mint

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