Compressed Natural Gas (CNG) prices have been increased by Re 1 per kg in New Delhi following a price hike reportedly issued by Indraprastha Gas Ltd. (IGL). According to reports, this marks the second hike in 48 hours, as city gas distributors continue to face mounting losses due to the Iran war, which has disrupted global energy supply chains. The latest revision brings CNG in Delhi to Rs 80.09 per kg, up from the previous rate of Rs 79.09 per kg following a Rs 2 increase announced on Friday. The price adjustment comes as fuel and CNG prices have been raised in tandem by India's oil marketing companies and city gas distributors over the past week, with petrol and diesel prices jumping 4 rupees per litre in under a week across major Indian cities, driving monthly fuel costs up by ₹340-570 for regular users.
The revised CNG rates across major cities show significant variations, with Delhi charging Rs 80.09 per kg, while Noida and Ghaziabad are priced at Rs 88.70 per kg. Gurugram has been set at Rs 84.12 per kg, and Greater Noida matches the higher rates of Rs 88.70 per kg. Ajmer commands the highest rate at Rs 90.44 per kg. These rates reflect the varying costs across different regions and distribution networks, with the latest revision showing Delhi's rates now matching the higher northern India rates. The price increases have sparked protests from taxi unions over unbearable financial burden, with drivers reporting that stagnant fares and frequent fuel hikes are eroding their savings.
According to the latest financial results announced on May 18, 2026, Indraprastha Gas reported profit before tax of Rs 446.60 crore in Q4 FY26, representing a 21.60% decline from Rs 569.70 crore in Q4 FY25. However, the company demonstrated strong operational performance with total volumes rising 4% to 3,427.21 million Scm compared to 3,280.87 million Scm in the previous year. During the quarter, CNG volumes stood at 2,532.28 million Scm (up 4% YoY), while LNG volumes declined 64% to 0.66 million Scm and PNG volumes increased 5% to 894.27 million Scm. The board also recommended a final dividend of 75%, i.e., Rs 1.50 per equity share for the financial year 2025-26, subject to shareholder approval.
Taxi and auto operators are facing significant challenges from the latest hike, with many describing it as unbearable for their operations. They have demanded fare increases to offset the rising costs, with auto and taxi unions in Delhi urging the government to raise fares citing rising CNG costs, higher maintenance expenses, and new regulatory charges. Drivers report that stagnant fares and frequent fuel hikes are eroding their savings, with some proposing a minimum fare increase from ₹30 to ₹50 for autos and higher per-km rates. However, commuters often resist fare changes, creating tension between operational viability and affordability. The latest price increases have intensified these challenges, with operators struggling to maintain profitability amid rising operational costs.
The stock market has responded positively to IGL's financial results, with shares advancing 3.99% to currently trade at Rs 157.75 on the BSE following the announcement. The positive market reaction reflects investor confidence in the company's operational performance despite the decline in quarterly profitability. The stock has gained for a third straight session, benefiting from the broader market rally with the Nifty Energy index rising 1.35% on the day. IGL's strong operational metrics, including volume growth and strategic expansion into new markets, continue to support investor sentiment despite the challenging operating environment and rising fuel costs that are impacting the broader energy sector.
