CNG prices surge again in Delhi as IGL hikes rates by Rs 2 per kg

Transport workers and low-income households face increased operational costs and reduced purchasing power from repeated fuel price hikes.
The fuel that powers much of Delhi's transport network had become a flashpoint
CNG price increases sparked labor unrest among auto and taxi drivers facing repeated hikes in operating costs.

Twice within a fortnight, the cost of compressed natural gas rose across Delhi and its surrounding cities, as Indraprastha Gas Limited pushed prices to levels that now strain the livelihoods of those who move the city. The increase arrives not in isolation but alongside surging LPG costs that have carried domestic fuel cylinders past the symbolic threshold of one thousand rupees in cities across India. For transport workers and low-income households, these are not policy abstractions — they are the arithmetic of survival, recalculated daily at the pump and the stove.

  • CNG prices in Delhi have risen twice in two weeks, reaching Rs 75.61/kg in the city and Rs 78.17/kg in the NCR, compressing the margins of drivers who depend on the fuel to earn a living.
  • LPG costs have also spiked twice in May alone, pushing domestic cylinders past Rs 1,000 in Delhi, Mumbai, Kolkata, and Chennai — a threshold that carries both economic and psychological weight for millions of households.
  • Commercial operators face even steeper pressure, with 19-kg restaurant and hotel cylinders now costing over Rs 2,300 in Delhi and as much as Rs 2,507 in Chennai, representing a Rs 750 annual increase.
  • Auto, taxi, and minibus unions struck just weeks ago over the previous round of CNG hikes, and the renewed increase raises the urgent question of whether fragile labor peace will hold or fracture again.
  • The cumulative effect is a city — and a country — where the cost of movement and warmth keeps rising, leaving workers and families with shrinking room to absorb what the market demands of them.

On May 21st, Indraprastha Gas Limited raised CNG prices by two rupees per kilogram for the second time in as many weeks. Delhi's rate climbed to Rs 75.61/kg, while Noida, Greater Noida, and Ghaziabad reached Rs 78.17/kg. The increase landed against a backdrop of fresh labor tension — just weeks earlier, unions representing auto drivers, taxi operators, and minibus workers had organized a strike to protest what they described as unprecedented fuel cost increases. Now the price was rising again.

CNG was not the only fuel under pressure. LPG had also surged twice during May. A fifty-rupee hike on May 7th was followed by smaller increases later in the month, pushing domestic cylinders past Rs 1,000 in nearly every major Indian city. Delhi and Mumbai reached Rs 1,003, Kolkata Rs 1,029, and Chennai Rs 1,018.50. Commercial cylinders told an even sharper story — a 19-kg unit used by hotels and restaurants now cost Rs 2,354 in Delhi and Rs 2,507 in Chennai, a cumulative annual increase of Rs 750.

Behind these figures are the daily calculations of taxi drivers, delivery workers, small restaurant owners, and households already stretched thin. The transport unions had already signaled they could not absorb such costs without either raising fares or accepting diminished earnings. With CNG climbing once more, the fuel market had become the most visible and immediate face of inflation's hold on ordinary working life — and the question of whether another strike would follow remained unanswered.

For the second time in as many weeks, Indraprastha Gas Limited announced a price increase for compressed natural gas across the Delhi region on May 21st. The company raised CNG by two rupees per kilogram, pushing the price in Delhi to 75.61 rupees. In the surrounding National Capital Region—Noida, Greater Noida, and Ghaziabad—the new rate climbed to 78.17 rupees per kilogram.

The timing of this latest increase carries weight. Just weeks earlier, unions representing auto drivers, taxi operators, and minibus drivers had organized a strike to oppose what they called unprecedented rate hikes in CNG. The fuel that powers much of Delhi's transport network had become a flashpoint for labor unrest, and now it was rising again.

CNG was not alone in climbing. Liquefied petroleum gas, the fuel that heats homes and powers commercial kitchens, had also surged twice in May. On May 7th, domestic LPG cylinders rose by 50 rupees. Then, earlier in the week of May 21st, another increase hit: domestic cylinders went up 3.50 rupees, while commercial cylinders jumped 8 rupees. The cumulative effect was stark. A domestic LPG cylinder now cost more than 1,000 rupees in nearly every major Indian city. In Delhi and Mumbai, the price had reached 1,003 rupees. Kolkata saw 1,029 rupees, and Chennai 1,018.50 rupees.

The commercial sector faced even sharper pressure. A 19-kilogram commercial cylinder—the kind used by hotels and restaurants—now sold for 2,354 rupees in Delhi, 2,454 in Kolkata, 2,306 in Mumbai, and 2,507 in Chennai. Over the course of a single year, commercial LPG had climbed 750 rupees.

These were not abstract numbers. They represented the daily operating costs of taxi drivers, delivery workers, small restaurants, and households already stretched thin. The transport unions had made their position clear just weeks before: they could not absorb these increases without passing them to passengers or cutting into already thin margins. Now, with CNG rising again, the question was whether the labor peace would hold or whether another round of strikes would follow. The fuel market had become the visible face of inflation's grip on ordinary work.

Unions representing auto drivers, taxi operators, and minibus drivers had organized a strike to oppose what they called unprecedented rate hikes in CNG
— Transport worker unions (May 2022)
The Hearth Conversation Another angle on the story
Inventor

Why does a two-rupee increase in CNG matter enough to make drivers strike?

Model

Because it's not just two rupees. A taxi driver might fill up multiple times a day. That's 20, 30, 40 rupees gone from daily earnings. For someone making 500 to 800 rupees a day, that's real money—it's the difference between feeding a family and not.

Inventor

But this is the second hike in two weeks. Why is it happening so fast?

Model

Global oil prices are volatile, and India imports most of its fuel. When crude spikes, the price at the pump follows quickly. But for workers, there's no quick adjustment. They can't raise fares overnight without losing customers.

Inventor

The LPG numbers seem even worse—750 rupees in a year?

Model

That's the commercial sector. Hotels and restaurants have to buy it regularly. They either absorb the cost or raise menu prices. Either way, it flows down to the customer.

Inventor

So this isn't just about transport workers?

Model

No. It's about anyone who depends on these fuels to work or live. The domestic cylinder crossing 1,000 rupees means families are spending more on cooking fuel. It's a squeeze across the whole economy.

Inventor

What happens next if prices keep rising?

Model

The unions made their position clear last month. They'll strike again if they have to. The question is whether the government can stabilize prices or if we're in a cycle now.

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