Indraprastha Gas Ltd (IGL) has announced a significant increase in Compressed Natural Gas (CNG) prices across Delhi and its surrounding regions. The hike, effective from 6 am on August 29, adds ₹3.89 per kilogram, pushing the price in Delhi to ₹86.98/kg from its previous rate of ₹83.09/kg.
The company attributed this price adjustment to a sharp escalation in international Liquefied Natural Gas (LNG) prices. This surge is a direct consequence of the escalating crisis in West Asia and subsequent disruptions affecting gas cargo movements through the critical Strait of Hormuz waterway.
CNG Prices See Cumulative Rise
This latest increase brings the cumulative rise in Delhi's CNG prices this year to nearly ₹10 per kilogram. At the beginning of the year, CNG was priced at ₹77.09/kg. Prior to the August 29 hike, prices had already seen a ₹6/kg increase through four installments in the second half of May.
Consumers in adjoining cities are also affected, with CNG now priced at ₹95.59/kg in Noida and Ghaziabad, and ₹92.01/kg in Gurugram. Prices vary by state due to local taxes such as VAT.
LPG and PNG Rates Largely Unchanged
While CNG prices climb, the cost of Piped Natural Gas (PNG) supplied to household kitchens in Delhi remains stable at ₹49.59 per standard cubic metre (SCM). Similarly, the rates for 14.2 kg domestic LPG cylinders and 19 kg commercial LPG cylinders have not changed on August 31.
Latest City-wise Gas Prices (August 31, 2026)
14.2 kg LPG Cylinder Rates
- Delhi: ₹942
- Bengaluru: ₹944.50
- Hyderabad: ₹994
- Mumbai: ₹941.50
- Chennai: ₹957.50
- Kolkata: ₹968
- Jaipur: ₹945.50
- Noida: ₹939.50
- Gurugram: ₹950.50
- Chandigarh: ₹951.50
Commercial (19 kg) LPG Cylinder Rates
- Delhi: ₹2,738
- Bengaluru: ₹2,821
- Hyderabad: ₹2,985
- Mumbai: ₹2,691.50
- Chennai: ₹2,906
- Kolkata: ₹2,872.50
- Jaipur: ₹2,765.50
- Noida: ₹2,738
- Gurugram: ₹2,755
- Chandigarh: ₹2,760
CNG Prices (per kg)
- Delhi: ₹86.98
- Bengaluru: ₹97
- Hyderabad: ₹112
- Mumbai: ₹86
- Chennai: ₹97
- Kolkata: ₹99.50
- Jaipur: ₹96.50
- Noida: ₹95.59
- Gurugram: ₹92.01
- Chandigarh: ₹99.90
PNG Prices (per SCM)
- Delhi: ₹49.59
- Bengaluru: ₹53
- Hyderabad: ₹51
- Mumbai: ₹51.50
- Chennai: ₹50
- Kolkata: ₹50
- Jaipur: ₹49.50
- Noida: ₹49.45
- Gurugram: ₹48.40
- Chandigarh: ₹54.70
India Diversifies Energy Sourcing Amid Geopolitical Tensions
In a strategic move to secure energy supplies and reduce reliance on traditional sources, the Indian government is actively diversifying its energy procurement. An incentive scheme for city gas distributors, effective September 1, 2026, aims to boost domestic PNG connections, encouraging a shift from LPG.
India is increasingly turning to the United States for both LPG and LNG supplies. Data from maritime intelligence firm Kpler indicates that in August, India imported approximately 0.62 million tonnes of LPG from the US, following 0.89 million tonnes in July. These imports collectively accounted for over 73 percent of the nation's total LPG imports.
Imports from Gulf suppliers have sharply declined due to the effective closure of the Strait of Hormuz after the outbreak of war between Iran and the United States. UAE LPG imports fell to about 140,000 tonnes in August, with Qatar supplying roughly 60,000 tonnes. Notably, Saudi Arabia provided no LPG to India in July or August.
A similar shift is observed in LNG sourcing. While Qatar historically supplied up to 1.2 million tonnes of LNG monthly, its imports to India dropped to zero in April. Conversely, US LNG supplies rose to about 0.75 million tonnes in August from 0.72 million tonnes in July.
Crude Oil Imports and Future Outlook
Despite the shifts in gas sourcing, Russia remains India's largest crude oil supplier, providing almost 2 million barrels per day in August. The UAE followed with 0.61 million tonnes. Venezuela has also emerged as an increasingly important part of India's crude supply diversification, contributing 383,000 barrels per day in August, though its scope for further increases is limited by crude characteristics and refinery configurations. UAE crude supplies have shown comparative resilience due to pipeline infrastructure to Fujairah and offshore logistics operating outside the Strait of Hormuz.