CNG Becomes Costlier: IGL Hikes Prices After 10 Months – Check Latest Rates in Delhi, Noida, Ghaziabad & Other Cities

In a move that will directly impact the budget of millions of commuters and vehicle owners, Indraprastha Gas Limited (IGL) has announced a fresh hike in Compressed Natural Gas (CNG) prices across its operating cities. Effective from Monday, April 7, 2025, the revised prices reflect an increase of ₹1 to ₹3 per kilogram, depending on the location.

🔺 IGL Revises CNG Prices After 10-Month Gap

This is the first price revision since June 2024 in Delhi, marking the end of a nearly 10-month-long stable pricing period. According to IGL, CNG prices in the capital have gone up by ₹1 per kg, while other cities have seen a steeper hike of up to ₹3 per kg.

This adjustment, while seemingly modest, is expected to have a tangible impact on daily commuters, especially those using CNG-powered vehicles like autos, taxis, and private cars.

🏙️ City-Wise CNG Price Update (As of April 7, 2025)

The new prices have already come into effect. Here’s how they look now:

• Delhi: ₹76.09 per kg (up ₹1)

• Noida & Ghaziabad: ₹84.70 per kg

• Other Cities: Increase of up to ₹3 per kg, depending on location

Previously, in November 2024, IGL had revised CNG prices in cities outside Delhi. It's worth noting that Delhi alone contributes nearly 70% of IGL’s total CNG sales, with the remaining 30% coming from other markets.

📉 Stock Market Reacts to Price Hike

Despite the price increase, IGL’s stock took a hit in the market. Amid broader market weakness, the company’s shares plunged by 4.5%, slipping below ₹190 on the BSE. On the previous trading day (Friday), IGL’s stock had closed at ₹198.40.

This drop reflects investor concerns over future demand and market reaction to rising fuel costs. Additionally, Mahanagar Gas Limited (MGL) shares have also witnessed a 33% decline, further highlighting sectoral pressure.

⚙️ Why the Price Hike? APM Pricing Policy in Focus

The recent hike aligns with the Indian government’s Administered Price Mechanism (APM), which governs domestic gas pricing. For April to September 2025, the government has fixed the APM gas price at $6.75 per mmBtu, up from the steady $6.5 per mmBtu in Q1.

This is the first APM price increase since April 2023, implemented in accordance with the Kirit Parikh Committee recommendations, which suggested a 4% annual hike starting from April 2023.

Analysts are closely watching how companies like IGL and MGL adapt to these policy-driven price revisions while maintaining profit margins.

📊 What Analysts Are Saying

Global investment firm Jefferies had earlier projected that a ₹2/kg hike would be necessary to maintain IGL's current margins. With Delhi seeing just a ₹1/kg increase, some experts believe further price adjustments may follow in the coming months.

Industry insiders also expect price sensitivity among consumers, which could impact demand in low-margin areas, particularly outside metro cities.

🚗 What This Means for You

If you rely on CNG for your daily commute, brace for a slight increase in your monthly fuel bills. The hike, though relatively small per kilogram, can add up quickly for commercial users or high-mileage vehicles.

While the move helps IGL manage rising input costs and align with government pricing norms, consumers across Delhi-NCR and other cities will now feel the pinch.

Stay tuned for further updates as analysts monitor the next steps of gas distributors and the broader market response.