CNG Gets Costlier In Delhi, Second Price Hike In Two Days

Compressed Natural Gas (CNG) will be costlier in Delhi and nearby regions from today. The CNG prices has been hiked by a rupee per kilogram in Delhi-NCR, in the second such hike in two days as the global energy markets finds itself rattled by the extended closure of the Strait of Hormuz due to the war in the Middle East.

CNG, which powers thousands of autos and cabs across the NCR, will now cost Rs 80.09 per kg in Delhi. The price is Rs 88.70 per kg in Noida and Ghaziabad and Rs 85.12 in Gurugram. It will cost Rs 88.58 per kg in Muzaffarnagar, Meerut and Shamli, Rs 91.42 per kg in Kanpur, Rs 89.44 in Ajmer, Rs 86.42 in Banda, and Rs 89.70 in Hapur.

Major natural gas distributor Indraprastha Gas Limited (IGL) said that the price hike aims to marginally offset the impact of increase in input gas cost along with steep appreciation of US dollar.

"The retail selling price of CNG has been increased by Rs 1/kg wef 6 am on 17.05.2026 in all GAs of IGL. The revision in retail prices of CNG has been effected only to marginally offset the impact of increase in input gas cost along with steep appreciation of USD. Even after revision, CNG would still offer upto 45% savings towards the running cost when compared to vehicles running on alternate fuel at the current level of prices," the IGL said.

Read: Petrol, Diesel Prices Hiked By Rs 3 Amid Iran War, CNG Up By Rs 2

The government had raised CNG prices by Rs 2 a couple of days ago in Delhi, raising it from Rs 77.09 per kg to Rs 79.09 per kg. A day earlier, a similar hike was seen in CNG prices in Mumbai - it now costs Rs 84 per kg in the financial capital. Fuel prices were also increased for the first time in four years, with petrol and diesel costing about three rupees more since Friday.

Impact Of CNG Price Hike

The CNG price hike impacts public transportation, feeding into retail inflation.

With a large section of public transports now running on CNG, it is expected that the increased cost would be passed on to the commuters. In Mumbai, autorickshaw unions have already started demanding a rupee increase to the Rs 26 base fare.

Fare hikes, in general, erode household savings and reduce spending power of the masses. But a rise in CNG prices was expected on the account of a surge in global crude oil and gas prices due to Iran war.

The closure of the Strait of Hormuz, which handles one-fifth of the world's oil flows, has impacted supplies across the world. This has made domestic prices unsustainable, with customers bearing the brunt of the increased costs.

Photo Credit: ANI

Losses Mount For OMCs

The retail fuel price hikes follow mounting losses for oil marketing companies in India.

The state-run oil companies, Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL), have been bearing losses of about Rs 1,600 crore daily, having to buy crude oil at higher prices but not being able to pass it off to customers

The OMCs had also sought relief, but reports suggest, the government had refrained for a major price hike thus far to keep inflation under control.

In a public appeal last week, Prime Minister Narendra Modi urged citizens to save fuel and work remotely - a move that would help limit the crude demand and lower India's foreign outflows.

Backing his call, several leaders had cut their convoys in a bid to cut fuel consumption. In Delhi, Chief Minister Rekha Gupta has announced two days work from home every week for government offices.