CNG prices in Delhi and adjoining cities increased by ₹3.89 per kg from Saturday, according to Indraprastha Gas Ltd. The company attributed this increase to a significant portion of input gas for CNG being met through imported LNG, whose rates in the spot or current market have seen a surge since the beginning of the West Asia conflict. As reported by Rediff Moneynews, IGL stated that 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. The latest hike comes after prices were raised by ₹2 per kilogram in late May, which came as global energy supplies were affected by the conflict in West Asia. This marks IGL's fifth CNG price hike this year and the first since May. The updated retail tariffs came into effect starting at 6:00 am on Saturday, August 29, marking the first revision in the cleaner fuel retail prices in three months.
City-based transport bodies on Saturday demanded an immediate hike in autorickshaw fares following the CNG price increase. Auto Rickshaw Association and Delhi Pradesh Taxi Union General Secretary Rajendra Soni stated that the Delhi government should increase auto and taxi fares with immediate effect within one week, as CNG prices were increased by ₹3.89 this morning, which has suddenly increased the financial burden on poor drivers. According to Hindustan Times, Soni warned that if the fares are not increased, they will hold a strike on September 9. The rise in international LNG rates has been attributed to ongoing tensions in West Asia, with the situation disrupted the movement of energy shipments through the Strait of Hormuz, a key route that carries around a fifth of the world's energy needs. Higher LNG demand in Europe ahead of the winter season has also put additional pressure on global prices.
The impact of rising CNG prices varies significantly across Delhi-NCR cities due to differences in state-level taxes. CNG prices have risen to ₹95.59 per kg in Noida and Ghaziabad, ₹95.47 per kg in Meerut, and ₹92.01 per kg in Gurugram, as reported by Hindustan Times. The latest hike brings CNG prices to ₹86.98 per kg in Delhi, representing a cumulative increase of ₹6 per kg over four stages in 10 days as global energy markets came under pressure amid the West Asia conflict. With international gas markets still vulnerable to geopolitical shocks, further increases cannot be ruled out if LNG supplies remain tight. The CNG price now averages ₹94.7 per kg in 22 locations across the NCR, with the latest revision affecting cities including Noida, Ghaziabad, Gautam Budh Nagar, Greater Noida, and Gurugram.
The All India Motor and Goods Transport Association also flagged the increase in CNG prices, with President Rajendra Kapoor emphasizing that the sudden increase of ₹3.89 per kg in CNG prices across Delhi-NCR is not merely a matter of higher fuel costs. As reported by Hindustan Times, Kapoor noted that it will have a direct impact on the pockets of the common man, the transport industry and ultimately the prices of essential commodities. The impact could extend beyond fuel bills, with higher CNG costs raising operating expenses for public transport, taxis, commercial vehicles and goods carriers, potentially adding to the cost of everything from daily commutes to food and delivered goods. For auto and taxi drivers, the hike threatens to eat further into already tight margins, while passengers could eventually bear the burden through higher fares. Small businesses and delivery workers could also face higher expenses as transportation costs climb. Notably, passenger and goods transport operators across Delhi-NCR rely heavily on CNG, making the latest price hike particularly significant for their operations.
