CNG Price Hike in Delhi-NCR: Rates Increased by ₹1/kg for Second Time in 48 Hours

Compressed natural gas (CNG) on Sunday became more expensive across Delhi and the wider National Capital Region (NCR) for the second time in two days, as the prolonged blockade of the Strait of Hormuz continues to send shockwaves through global energy markets. Indraprastha Gas Limited (IGL), the region's principal gas distributor, raised CNG prices by ₹1 per kilogram from 6am on Sunday, pushing the rate in Delhi past the ₹80 mark to ₹80.09/kg. 

In Noida and Ghaziabad, the revised rate now stands at ₹88.70/kg. Gurugram residents will pay ₹85.12/kg, while prices in Muzaffarnagar, Meerut and Shamli have risen to ₹88.58/kg. The fuel costs ₹91.42/kg in Kanpur, ₹89.44/kg in Ajmer, ₹86.42/kg in Banda, and ₹89.70/kg in Hapur.

Today's revision follows a ₹2/kg increase on 15 May, itself part of a broader wave of fuel price rises after state-owned oil marketing companies found operations financially unsustainable following months of frozen retail prices.

IGL said the revision was unavoidable given surging input costs and a sharp rise in the value of the 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 company said.

The pressure on prices stems from the US-Israel attack on Iran in February, which prompted Tehran's retaliation and disrupted shipping through the Strait of Hormuz — one of the world's most critical oil transit corridors. Crude oil surged above $120 per barrel at the height of the conflict and, though it has retreated from those peaks, continues to trade in the $104–$110 range, keeping fuel retailers under sustained strain.

The CNG hikes have coincided with a broader rise in retail fuel prices announced by the government on 15 May, with petrol climbing roughly ₹3 per litre to ₹97.77/litre in Delhi and diesel rising to ₹90.67/litre. It marks the first fuel price increase in four years.

The knock-on effects for commuters are likely to be swift. CNG powers a vast fleet of autorickshaws, taxis and goods vehicles across the NCR, and transport operators are widely expected to pass the added costs on to passengers. In Mumbai, where Mahanagar Gas Limited raised its rate to ₹84/kg earlier in the week, autorickshaw unions have already demanded a ₹1 increase to the existing ₹26 base fare.

The simultaneous rise across fuel categories has sharpened inflation concerns for transport-dependent households, with industry analysts warning that higher CNG costs feed directly into retail prices across the supply chain. 

The Strait of Hormuz carries roughly a fifth of the world's oil and gas trade, and its continued blockade means domestic prices are unlikely to stabilise in the near term.