Indraprastha Gas Limited (IGL) has announced a new increase in the price of compressed natural gas (CNG) in all of its operating cities, a decision that would directly affect the finances of millions of commuters and car owners. Depending on the area, the updated costs represent a ₹1 to ₹3 per kilogramme increase as of Monday, April 7, 2025.
IGL Updates CNG Prices Following a 10-Month Interval
After an almost 10-month era of constant prices, this is Delhi’s first price change since June 2024. The capital’s CNG rates have increased by ₹1 per kilogramme, but costs in other cities have increased more sharply, reaching ₹3 per kilogramme, according to IGL.
Despite its apparent simplicity, this change is anticipated to have a noticeable effect on everyday travellers, particularly those who use CNG-powered automobiles, taxis, and private vehicles.
City-Wise CNG Price Update (As of April 7, 2025)
The updated pricing is already in force. Here is their current appearance:
- Delhi: ₹76.09 (up ₹1) per kilogramme
- Ghaziabad & Noida: ₹84.70 per kilogramme
Depending on the region, other cities may see an increase of up to ₹3 per kilogramme. IGL had already updated CNG pricing in non-Delhi cities in November 2024. It’s important to note that Delhi accounts for around 70% of IGL’s total CNG sales, with other markets providing the remaining 30%.
Stock Market Reacts to Price Hike
IGL’s shares suffered in the market despite the price hike. The company’s shares fell 4.5%, falling below ₹190 on the BSE, amid general market weakness. Friday was the last trading day, and IGL’s shares ended at ₹198.40.
Investor worries about future demand and the market’s response to growing fuel prices are reflected in this decline. Furthermore, sectoral pressure is further shown by the 33% drop in Mahanagar Gas Limited (MGL) shares.
Following the recommendations of the Kirit Parikh Committee, which recommended a 4% yearly increases beginning in April 2023, this is the first APM price increase since April 2023.
Investor worries about future demand and the market’s response to growing fuel prices are reflected in this decline. Furthermore, sectoral pressure is further shown by the 33% drop in Mahanagar Gas Limited (MGL) shares.
How businesses like IGL and MGL adjust to these policy-driven price changes while preserving profit margins is being actively monitored by analysts.
What Analysts Are Saying?
Jefferies, a global investment company, had previously predicted that IGL’s existing margins would require a raise of 2/kg. Given that Delhi only saw a ₹1/kg hike, some analysts predict that further pricing changes might occur in the months to come.
Additionally, industry experts anticipate that consumers would be price sensitive, which may affect demand in low-margin locations, especially outside of major cities.
What You Should Know About This
Be prepared for a little rise in your monthly fuel expenses if you depend on CNG for your daily commute. Despite being very tiny per kilogramme, the rise can soon mount up for high-mileage automobiles or business customers.
Customers in Delhi-NCR and other locations will now be negatively impacted, even if the decision helps IGL control growing input prices and conform to government pricing standards.
