Indraprastha Gas Increases CNG Prices by Re 1, Marking Delhi's Second Price Hike
New Delhi: Indraprastha Gas Limited (IGL) hiked its retail CNG price by Re 1/kg on Sunday (May 17) citing a rise in input gas costs and “steep appreciation” of the dollar, marking the latest fuel price increase in India as the West Asia crisis continues to disrupt its energy supplies.
IGL supplies CNG, which is often used by autos and city buses, to Delhi as well as parts of Uttar Pradesh, Haryana and Rajasthan. Against the background of reports that prices of the fuel were hiked by Rs 2 in Delhi and Mumbai among other cities on Friday, Sunday's move would mark the second rate increase in the capital in two days.
“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,” IGL said in a statement on Sunday.
Its move also comes two days after state-run fuel retailers increased prices of petrol and diesel by Rs 3 per litre, marking the first hike in four years.
Days prior, Union petroleum and natural gas minister Hardeep Singh Puri while maintaining that India does not face energy shortages hinted that retailers staring at mounting losses would have to hike prices at the pump.
Coming shortly after votes cast in the recently concluded assembly elections were counted, the price hike was met with criticism by the opposition.
India imports almost 90% of its oil requirement and some 55% of crude inflows ordinarily transit the Strait of Hormuz, which Iran has blockaded in retaliation to the US-Israeli attacks on it. The waterway's virtual closure has prominently pinched Indian LPG supplies, hitting small restaurants and migrant labourers especially hard and prompting the government to ramp up domestic production.
Due to the strait's closure India imported 0.95 million tonnes of LPG in April and 1.1 million tonnes in March, both lower than the two million tonne-average figure for April 2025-February 2026, the Indian Express reported citing data provided by Kpler.
Its crude oil imports totalled 4.4 million barrels per day on average in April, 15% lower than the figure for February, per the Times of India, which also cited data from the ship-tracking firm.
Rising crude oil prices due to the West Asia conflict, alongside foreign investment outflows from India, have also pushed the value of the rupee down, with the currency breaching the 96-mark against the dollar on Friday.
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