New Delhi: Indraprastha Gas Limited (IGL) on Tuesday raised the price of compressed natural gas (CNG) in Delhi and neighbouring National Capital Region (NCR) areas by Rs 2 per kilogram, marking the fourth increase since May 15. The hike is attributed to higher input costs and losses stemming from the ongoing West Asia crisis. With this revision, CNG now costs Rs 83.09 per kg in the capital, up by Rs 6 from Rs 77.09 per kg before May 15.
The latest price adjustment came a day after oil retailers increased petrol and diesel prices by over Rs 2 per litre across the country. Since May 15, petrol and diesel prices have risen by Rs 7.35 and Rs 7.53 per litre, respectively. IGL had previously raised CNG prices by Rs 2 per kg on May 15, followed by Rs 1 per kg hikes on May 18 and May 23. Currently, CNG is priced at Rs 91.7 per kg in Noida and Ghaziabad, Rs 91.58 per kg in Meerut, and Rs 88.12 per kg in Gurgaon.
The rising CNG prices have significantly impacted freight and passenger fares in the Delhi-NCR region, where a majority of auto-rickshaws, taxis, and goods carriers operate on the cleaner fuel. Commuters have reported that auto and taxi fares have already surged by 10-15% in the last few weeks, adding to the financial burden on daily travellers.
Like petrol and diesel, CNG prices vary across states due to different value-added tax (VAT) structures. Mahanagar Gas also increased the CNG price in Mumbai by Rs 2 to Rs 84 per kg. However, there has been no change in the rates of piped kitchen gas and domestic LPG cylinders. Piped natural gas (PNG) continues to be priced at Rs 49.59 per standard cubic metre in Delhi, while a 14.2-kg domestic LPG cylinder is available at Rs 913.
Officials stated that the input cost of natural gas has increased by more than Rs 10 per kg since February this year due to disruptions in energy supplies caused by geopolitical tensions in West Asia. India imports over 50% of its 190 million standard cubic metres per day liquefied natural gas (LNG) requirement. Before the conflict, around 30% of the supplies came through the Strait of Hormuz, which has been disrupted since the military conflict erupted in West Asia. India has diversified supplies from alternative regions to bridge the gap.
Impact on Commuters and Economy
The repeated CNG price hikes have put pressure on the transportation sector, leading to increased operational costs for auto-rickshaws, taxis, and goods carriers. Many drivers have passed on the additional costs to passengers, resulting in higher fares. Commuters in Delhi-NCR are feeling the pinch, with some reporting fare increases of up to 15% in recent weeks. The situation is expected to persist if input costs remain elevated due to global supply disruptions.
Broader Fuel Price Trends
The CNG price hike follows a broader trend of rising fuel prices in India. Petrol and diesel prices have been on an upward trajectory since mid-May, driven by similar factors including global crude oil price volatility and supply chain disruptions. The government has not intervened to cap prices, leaving consumers to bear the brunt of the increases.
As energy markets remain uncertain, further price adjustments cannot be ruled out. Consumers and businesses alike are advised to plan their fuel budgets accordingly and explore alternative transport options where feasible.
