The price of compressed natural gas climbed overnight across three states
On the morning of December 4, 2021, millions of drivers across Delhi, Haryana, and Rajasthan encountered a quiet but consequential shift: the price of compressed natural gas had risen overnight, courtesy of Indraprastha Gas Limited. The increase, ranging from Rs 53.04 per kilogram in Delhi to Rs 67.82 in more distant towns, arrived just days after commercial LPG prices had also climbed — a reminder that energy costs, like tides, rarely move in isolation. For the taxi drivers, delivery operators, and commuters who had turned to CNG precisely because it was the affordable alternative, the hike was less a headline than a lived reality, absorbed quietly at the pump before the day had properly begun.
- IGL raised CNG prices across three states effective 6 a.m. on December 4, with no grace period for drivers or commercial operators to prepare.
- The increases compounded an already tense moment — commercial LPG cylinder prices had risen just days earlier, squeezing fuel-dependent livelihoods from multiple directions.
- Geography sharpened the pain: while Delhi saw rates climb to Rs 53.04/kg, outlying towns in Uttar Pradesh and Rajasthan faced rates as high as Rs 67.82/kg, reflecting the hidden cost of distance from supply hubs.
- Taxi operators and fleet owners — who chose CNG for its relative affordability — now face eroded margins, with a single 50-kg tank fill costing hundreds of rupees more than before.
- IGL announced the new rates through official social media channels, leaving affected drivers to absorb the change in real time, with no mechanism for negotiation or delay.
On the morning of December 4, 2021, drivers across Delhi, Haryana, and Rajasthan arrived at CNG stations to find prices had risen overnight. Indraprastha Gas Limited, the primary supplier of compressed natural gas across the National Capital Region, had implemented new rates effective at 6 a.m. — and the direction was uniformly upward.
In Delhi, the rate climbed to Rs 53.04 per kilogram. Moving outward, the numbers rose further: Noida and Ghaziabad reached Rs 58.58, Gurugram Rs 60.40, and Rewari Rs 61.10. The steepest increases appeared in the more distant towns — Kanpur, Hamirpur, and Fatehpur in Uttar Pradesh hit Rs 67.82 per kilogram, while Ajmer, Pali, and Rajsamand in Rajasthan reached Rs 67.31. The pattern was geographic: the farther from the central supply hub, the higher the cost to deliver the fuel.
The timing carried its own logic. Just days earlier, IGL had raised commercial LPG cylinder prices. The CNG hike followed as a continuation of the same upstream pressure. Founded in 1998 as a joint venture between GAIL India, Bharat Petroleum, and the Delhi government, IGL had grown over two decades into the backbone of natural gas distribution for millions of daily users. As global energy costs fluctuated, those pressures were now arriving at the pump.
For the taxi operators, delivery services, and commercial fleet owners who had chosen CNG precisely because it was the more affordable fuel, the increase was immediate and unavoidable. Announced through social media with hours of notice, it offered no room for adjustment. It was simply the new reality — absorbed quietly, before the morning commute had even begun.
On the morning of December 4, 2021, drivers across three states woke to find the price of compressed natural gas had climbed overnight. Indraprastha Gas Limited, the company that supplies CNG to millions of vehicles in Delhi, Haryana, and Rajasthan, had raised its rates effective at 6 a.m. The increases varied by location, but they were uniform in their direction: up.
In Delhi, a kilogram of CNG now cost Rs 53.04, a jump from the previous rate. The hike rippled outward across the National Capital Region and beyond. In Noida, Greater Noida, and Ghaziabad, drivers paid Rs 58.58 per kilogram. Travel further into Haryana and the numbers climbed higher still. Gurugram residents faced Rs 60.40 per kilogram, while Rewari pushed toward Rs 61.10. In Karnal and Kaithal, the rate settled at Rs 59.30 per kilogram. The steepest increases appeared in the outlying areas: Kanpur, Hamirpur, and Fatehpur in Uttar Pradesh reached Rs 67.82 per kilogram, while Ajmer, Pali, and Rajsamand in Rajasthan hit Rs 67.31 per kilogram.
The timing of the increase was not coincidental. Just days earlier, IGL had raised prices on commercial LPG cylinders. Now it was CNG's turn. The company, which operates primarily in Delhi and the surrounding region, had announced the adjustment through its official channels, posting the new rates on social media for drivers to see. For those who relied on CNG—taxi operators, commercial vehicle owners, delivery services—the news meant tighter margins and higher costs passed down the line.
Indraprastha Gas Limited itself was born from a specific need. Established in 1998 as a joint venture between GAIL India, Bharat Petroleum, and the Delhi government, the company took over what had been called the Delhi City Gas Distribution Project. Its mandate was straightforward: build and operate a network to deliver natural gas across the national capital region to households, transport operators, and businesses. Over two decades, it had grown into the primary supplier serving millions of daily transactions. Now, as global energy prices fluctuated and costs rose upstream, those increases were being passed to the end user.
The price structure itself told a story of geography and demand. Delhi, as the largest market and the company's original focus, saw the smallest percentage increase. But move outward into smaller cities and towns, and the per-kilogram cost jumped significantly. Rewari cost more than Gurugram. The Rajasthan cities cost more than most of Haryana. These variations reflected the economics of distribution—the farther from the main supply hub, the higher the cost to deliver the fuel.
For the hundreds of thousands of people who depended on CNG as their primary fuel, the increase was immediate and unavoidable. A taxi driver filling a 50-kilogram tank would now spend hundreds of rupees more per fill-up. A small commercial operator running a fleet of vehicles would see monthly fuel costs rise noticeably. The hike, announced without warning and effective within hours, left no time for adjustment or negotiation. It was simply the new price, starting now.
Notable Quotes
With effect from 6 am on 4th December 2021, IGL revises its CNG retail price in NCT of Delhi, Haryana & Rajasthan— Indraprastha Gas Limited (official announcement)
The Hearth Conversation Another angle on the story
Why did IGL raise prices across three states all at once, rather than staggering them?
The company likely coordinates price changes regionally to avoid confusion and to align with broader cost pressures. When upstream natural gas costs rise, they pass it through systematically rather than piecemeal.
The price difference between Delhi and Rajasthan is striking—Rs 53 versus Rs 67. What explains that gap?
Distribution distance and infrastructure. Rajasthan is farther from the supply source, and the network there is thinner. The cost to deliver gas to smaller towns is higher per unit than in a dense urban market like Delhi.
How much warning did drivers get?
None, really. The announcement came on December 3rd, effective the next morning at 6 a.m. For someone filling up that day, it was a surprise at the pump.
Who feels this most acutely?
Taxi operators and small commercial vehicle owners. They run on thin margins. A rupee per kilogram adds up fast across a fleet. Households using CNG for cooking feel it too, but the transport sector bears the real weight.
Is this part of a larger pattern?
Yes. IGL had just raised LPG prices days before. This suggests the company is responding to broader energy cost pressures—global oil markets, supply chain issues, whatever is pushing natural gas prices up globally.
What happens next?
Either prices stabilize and this becomes the new normal, or they keep climbing. Either way, the commercial sector will lobby for relief, and consumers will adjust their behavior—maybe shift to other fuels, maybe just absorb the cost.