CNG prices have climbed 80 percent in less than two years
For the fifteenth time since March, Indian households and workers who depend on compressed natural gas woke to find the cost of their daily movement had risen again — a quiet but cumulative burden that now amounts to an 80 percent increase in under two years. Indraprastha Gas Ltd, citing the relentless pressure of global input costs, raised Delhi's CNG price to Rs 79.56 per kilogram on December 17, a number that carries within it the distant weight of a war in Ukraine, severed pipelines across Europe, and the slow arithmetic of hardship passed down through commodity markets to the people least able to absorb it. What began as a geopolitical rupture in Eastern Europe has become, for an auto-rickshaw driver in Noida or a delivery operator in Gurugram, simply the price of getting through the day.
- Fifteen hikes in nine months have transformed what once felt like a temporary disruption into a new and grinding normal for CNG-dependent commuters and businesses across India.
- The 80 percent surge since April 2021 — Rs 36.16 added to every kilogram — is quietly hollowing out the margins of taxi drivers, logistics operators, and small fleet owners who chose CNG precisely for its affordability.
- Russia's deliberate reduction of gas supplies to Europe set off a chain reaction through global LNG markets that no single country, including India, has been able to insulate itself from.
- European Union energy ministers failed to agree on a coordinated price cap, leaving the global market without a stabilizing mechanism and signaling that upstream pressure on prices is unlikely to ease soon.
- With no resolution in sight on either the geopolitical or the regulatory front, the trajectory for Indian consumers points toward continued compression — each modest-looking hike another step in a long, steep climb.
On the morning of December 17, Indraprastha Gas Ltd raised compressed natural gas prices across India for the fifteenth time since March, citing the rising cost of the raw gas it purchases. In Delhi, the price moved to Rs 79.56 per kilogram; Gurugram drivers faced Rs 87.89, while Noida, Greater Noida, and Ghaziabad reached Rs 82.12. A few smaller markets — Kanpur, Fatehpur, and Harmirpur — were spared this round.
The frequency of the increases was more striking than the size of any single one. Since April 2021, CNG prices had risen by Rs 36.16 per kilogram — an 80 percent increase in less than two years. The last large single move had come in October, when IGL raised rates by Rs 3 per kilogram at once.
The source of the pressure lay far from Indian pump stations. Russia's invasion of Ukraine prompted Moscow to cut natural gas deliveries to Europe, sending prices on the continent sharply higher and tightening global LNG markets that India depends on for imports. In Brussels, EU energy ministers debated a bloc-wide price cap but could not reach agreement, leaving the crisis without a coordinated response.
For the Indian commuter or small business operator running a CNG vehicle, the cumulative mathematics were unforgiving. Fuel costs had nearly doubled in two years, and each new hike — however incremental it appeared — narrowed margins further. As long as Russia's supply cuts persisted and global gas markets remained strained, the pattern offered little reason for optimism.
On Saturday morning, December 17, Indraprastha Gas Ltd announced another round of price increases for compressed natural gas across India, effective at 6 a.m. In Delhi, the pump price climbed to Rs 79.56 per kilogram, up from Rs 78.61 the day before. The company attributed the move to rising costs for the raw gas it purchases—a familiar refrain that has become routine over the past nine months.
The hike rippled across the Delhi-NCR region with varying intensity. Gurugram drivers now faced Rs 87.89 per kilogram, while those in Noida, Greater Noida, and Ghaziabad paid Rs 82.12. Further afield, Rewari hit Rs 89.57, Karnal and Kaithal reached Rs 88.22, and Ajmer, Pali, and Rajasamand climbed to Rs 89.83. A handful of smaller markets—Kanpur, Fatehpur, and Harmirpur—were spared this time, their prices holding steady.
What made this increase noteworthy was not its size but its frequency. This marked the fifteenth price adjustment since March 7, 2022. The last major jump had come in October, when IGL raised rates by Rs 3 per kilogram in a single move. Taken together, the cumulative effect was staggering: since April 2021, CNG prices had climbed by Rs 36.16 per kilogram—an 80 percent increase in less than two years.
The underlying cause traced back to global energy markets roiled by geopolitics. Russia's invasion of Ukraine in February had triggered a cascade of consequences across Europe's energy infrastructure. As Moscow cut natural gas deliveries to the continent in retaliation for sanctions, European prices spiked dramatically. The shock waves traveled through global commodity markets, pushing up the cost of liquefied natural gas that India imports. That pressure translated directly to the pump.
In Brussels, European Union energy ministers had spent months wrestling with how to respond. They debated whether a bloc-wide price cap on natural gas could ease the crisis, but failed to reach agreement even as the European Commission proposed such a measure. The inability of Europe's largest economies to coordinate a unified response underscored how intractable the problem had become—and how far its effects would reach.
For Indian consumers and businesses, the mathematics were unforgiving. A taxi driver or delivery service operator running a CNG vehicle had watched their fuel costs nearly double in two years. Every price hike, however modest it appeared on the surface, compressed margins further. The pattern suggested no near-term relief was coming, as long as global gas markets remained tight and Russia's supply cuts persisted.
Notable Quotes
Due to increased input gas cost, Indraprastha Gas Ltd revises CNG retail price effective 6 a.m. on December 17, 2022— Indraprastha Gas Ltd
The Hearth Conversation Another angle on the story
Why does a price hike in Delhi matter enough to report on a Saturday morning?
Because 15 million people in the capital region depend on CNG for transportation. When the pump price moves, it moves their entire cost structure—taxis, buses, delivery trucks. It's not abstract.
But this is just one more hike in a long line. What makes December 17 different?
Nothing, really. That's the point. It's the fifteenth increase since March. The story isn't the hike itself—it's the relentlessness. People are watching their fuel costs double in two years and seeing no end.
The article mentions Europe and Russia. How connected are those dots?
Directly. India doesn't produce enough natural gas domestically. It imports liquefied gas, mostly from the Middle East and Australia. When Russia cuts supplies to Europe, global prices spike. India pays the world price. The invasion in Ukraine set this whole chain in motion.
So this is a story about India being caught in someone else's war?
In a way, yes. But also about how interconnected energy markets are now. A geopolitical event thousands of miles away reaches a taxi driver in Delhi within months. There's no insulation.
What happens next? Does this keep rising?
That depends on Russia and Europe. If the conflict continues and supplies stay cut, prices stay high. If there's any resolution, relief might come. But for now, there's no signal that change is coming soon.