In a fresh blow to consumers, the price of Compressed Natural Gas (CNG) in Delhi has been hiked by Rs 2 per kilogram, taking it to Rs 83.09 per kg. This marks the second increase in CNG prices within a week, adding to the financial burden on vehicle owners and households relying on the fuel.
Details of the Price Hike
The revised price of CNG in the national capital came into effect from 6 am on Thursday, May 26, 2026. According to a notification from Indraprastha Gas Limited (IGL), the new rate of Rs 83.09 per kg is applicable for all CNG stations in Delhi. The previous price was Rs 81.09 per kg.
This increase follows a similar Rs 2 per kg hike earlier this month, which had pushed the price from Rs 79.09 to Rs 81.09. The cumulative effect of these two hikes means CNG is now Rs 4 per kg more expensive than at the beginning of May 2026.
Reasons Behind the Surge
The price revision is attributed to the rising cost of natural gas in the international market. IGL, which is the sole distributor of CNG in Delhi, adjusts its prices based on the average price of natural gas imported under long-term contracts. The recent spike in global energy prices, driven by geopolitical tensions and supply constraints, has forced the company to pass on the increased cost to consumers.
Industry experts also point to the depreciation of the Indian rupee against the US dollar, which makes imported natural gas more expensive. Additionally, the government's decision to allow domestic gas prices to be linked to global benchmarks has contributed to the volatility.
Impact on Consumers and Economy
The CNG price hike is expected to have a cascading effect on the economy. Auto-rickshaws, taxis, and buses that run on CNG will see an increase in operating costs, which may eventually be passed on to commuters. Households using CNG for cooking and heating will also face higher monthly bills.
According to data from the Petroleum Planning and Analysis Cell (PPAC), the transport sector accounts for nearly 70% of CNG consumption in India. The price hike could lead to a shift towards alternative fuels or public transport, but the lack of immediate substitutes may cause short-term inflationary pressure.
Comparison with Petrol and Diesel
The CNG price hike comes on the heels of similar increases in petrol and diesel prices. Over the past week, petrol prices in Delhi have risen by Rs 1.5 per litre, while diesel has become more expensive by Rs 1.2 per litre. Currently, petrol is priced at Rs 106.54 per litre and diesel at Rs 96.73 per litre in the capital.
Despite the recent hikes, CNG remains significantly cheaper than petrol and diesel. However, the gap is narrowing, reducing the cost advantage that had prompted many vehicle owners to switch to CNG.
Future Outlook
Analysts predict that CNG prices may remain elevated in the near term due to sustained global energy prices and currency fluctuations. The government has assured that it is monitoring the situation and may consider measures to cushion the impact on consumers, such as reducing excise duty or increasing domestic gas allocation.
For now, Delhiites will have to brace for higher transportation and household costs as the city grapples with the second CNG price hike in a week.
