Amongst gas importing countries such as India, Delhi has one of the lowest CNG retail prices in the world, the PSU claimed
| Photo Credit:
Mrinal Pal
State-run Indraprastha Gas (IGL) raised the price of compressed natural gas (CNG) by ₹3.89 per kg in Delhi on account of the West Asia crisis resulting in closure of the Strait of Hormuz (SoH), which is pushing up international prices of liquefied natural gas (LNG).
IGL sourced 52 per cent of its natural gas supply through imports during April-June 2026. Its average cost of procuring gas during the period stood at roughly ₹40-45 per standard cubic meters (SCM).
After the latest hike, effective August 29 6.00 am, CNG prices in Delhi stand at ₹86.98 per kg. Since January 2026, this is the fifth hike in prices by India’s largest CNG distributor, which also operates City Gas Distribution networks across twelve geographical areas in Delhi, Uttar Pradesh, Haryana and Rajasthan.
“Since July 2026, due to re-escalation of the West Asia crisis affecting LNG cargo movements through the SoH, the Global LNG prices have nearly doubled as compared to pre-crisis period. Additionally, there is an urgency in Europe to increase their natural gas storage on account of the approaching winter season,” IGL said in a statement late on Friday night.
In a post result analyst call on August 14, 2026, IGL Director (Commercial) Mohit Bhalla responding to an analyst query on gas acquisition costs said “I think it will be very, very difficult because these are some of the commercial terms and all. But just as a guidance and all, it is hovering around the first quarter around ₹40-45 per SCM. July onwards, still the turbulence is there and there has been some increase.”
Amongst gas importing countries such as India, Delhi has one of the lowest CNG retail prices in the world, the PSU claimed.
IGL emphasised 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 while ensuring continuity and reliability of CNG supplies.
Delhi’s CNG retail price remained more or less stable during the Hormuz crisis while International Gas Benchmarks (Europe’s TTF and Asia’s JKM) rose sharply during the same period.
On gas supply, Bhalla at the same analyst call said “We are selling around 9.5 million standard cubic meters (MSCM) of gas. So 48 per cent is coming from the domestic (Administered Price Mechanism gas, New Well Gas or High-Pressure High-Temperature gas) and around 52 per cent from the imported.
Equirus Securities in an August 7 commentary pointed out that the average Asian spot LNG prices increased to above $19 per million British thermal units (mBtu) in July 2026 and current prices are again more than $20 per mBtu as China returns amid existing market complexities.
Spot LNG is more than 25 per cent of oil-equivalent pricing, limiting price- sensitive demand. The European Union (EU) storage stands at only 58 per cent, materially below historical average, leaving the EU exposed to stronger Asian demand and renewed competition for cargoes ahead of winter, the brokerage added.
Published on August 29, 2026
