CNG prices in Delhi-NCR will rise by ₹3.89 per kg from Saturday, pushing up fuel costs for autos, taxis, buses and other commercial vehicles and potentially adding to transport inflation.
BY PC Bureau
August 29: CNG users in Delhi-NCR will have to pay more from Saturday, with Indraprastha Gas Limited (IGL) raising the price of compressed natural gas by ₹3.89 per kg. The new rate will come into effect at 6 am on August 29.
In Delhi, CNG will now cost ₹86.98 per kg, compared with ₹83.09 currently. The increase comes after several CNG price revisions earlier this year and is likely to raise operating costs for autos, taxis, buses, goods carriers and private vehicle owners across the National Capital Region.
IGL attributed the latest increase to higher international liquefied natural gas (LNG) prices. The company cited the renewed escalation of the West Asia crisis, disruptions to cargo movement through the Strait of Hormuz and stronger European demand as countries build up gas inventories ahead of winter.
According to IGL, international LNG prices have nearly doubled from their pre-crisis levels. The company said the ₹3.89-per-kg increase was a calibrated revision intended to partly offset higher input costs while maintaining reliable supplies.
CNG prices in Delhi hiked by ₹3.89/kg, effective 6 am, August 29. pic.twitter.com/fz3fBm7A6H
— Vani Mehrotra (@vani_mehrotra) August 28, 2026
Transport costs could rise
The immediate impact is likely to be felt by commercial vehicle operators. Auto-rickshaws, taxis, app-based cabs, school buses and goods carriers that rely on CNG will see their fuel bills increase. Previous CNG increases have already prompted auto and taxi operators to seek fare revisions, with commuters reporting higher transport costs.
If operators pass the additional fuel expense on to passengers, auto and taxi fares could rise. Even where official fares remain unchanged, drivers and fleet operators may try to recover the additional cost through higher negotiated fares or reduced margins.
Why CNG can add to inflation
The impact of the CNG hike will not necessarily stop at the fuel pump. Transport is an important input cost for the movement of vegetables, fruits, milk, groceries, manufactured goods and other products. If freight operators face higher fuel bills, some of that additional cost can eventually be passed on to wholesalers, retailers and consumers.
The effect could also be felt through passenger transport. Higher auto, taxi and bus operating costs can increase the daily commuting expenses of workers and households. For people who depend heavily on shared mobility or CNG-powered public transport, even relatively small fare increases can add to monthly household expenditure.
There could also be a second-round effect if businesses respond to higher transportation costs by raising prices. Restaurants, retailers, delivery services and small businesses that depend on regular movement of goods and workers could face higher operating expenses. If several energy and transport costs rise together, the cumulative impact could put additional pressure on consumer prices.
However, the CNG increase by itself is unlikely to cause a major nationwide inflation shock. Its more immediate effect will probably be concentrated in Delhi-NCR and in sectors heavily dependent on CNG. The inflationary impact will become more significant if higher gas costs persist and are accompanied by increases in petrol, diesel, electricity, LPG or other energy prices.
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Pressure on household budgets
For private CNG vehicle owners, the impact will depend on mileage and monthly usage. A vehicle consuming 10 kg of CNG a week, for example, would see an additional fuel expense of about ₹39 a week, while vehicles covering much greater distances could face substantially higher increases.
For commercial operators, the impact will be larger because CNG constitutes a recurring business expense. Fleet operators, cab companies and goods carriers may eventually seek fare or freight-rate increases if the higher fuel cost cannot be absorbed through lower margins.
CNG had already become more expensive earlier this year. In May, IGL raised prices several times, taking the Delhi rate from ₹77.09 per kg before May 15 to ₹83.09 by late May.
The latest increase therefore comes on top of earlier increases and reinforces the pressure on transport costs in the capital region.
For now, IGL has not announced a corresponding change in household piped natural gas (PNG) prices in the latest revision. The immediate burden will therefore fall mainly on CNG vehicle users and businesses.
The latest price will take effect at IGL stations across Delhi-NCR from 6 am on Saturday.
