IGL Hikes CNG Prices by ₹1–3/kg Following APM Gas Rate Revision

7 Apr 2025 , 12:14 PM

Indraprastha Gas Ltd. (IGL), gas distribution companies, has announced an increase in the rate of Compressed Natural Gas (CNG), effective instantly. Delhi sees CNG price hike of ₹1 per kg, all other operating markets of ₹3 per kg, the first hike for the fuel in Delhi since June 2024.

Now, A revised price, CNG will cost ₹76.09 per kg in Delhi, the revised rate in Noida and Ghaziabad is ₹84.70. Delhi continues to be IGL’s biggest market, accounting for almost 70% of the company’s aggregate sales of CNG, while the other 30% comes from other cities.

The new price hike comes after the company revised rates in November 2024 when prices were hiked by IGL in all markets except Delhi. The latest price hike comes after the government decided to readjust gas prices under the Administered Price Mechanism (APM).

The new APM structure also has kept gas prices at $6.75 per mmBtu for April to September 2025. In the first three months of 2025, for comparison, APM gas prices held flat at $6.5 per mmBtu. It is the first APM gas price increase since April 2023, when it was raised in line with the recommendations of the Kirit Parikh committee.

As per the committee’s guidelines implemented from April 2023, APM prices are allowed to increase by 4% annually starting from the third year of implementation. The impact of this hike on city gas distribution companies is still to be seen, more so at a time when stocks like IGL and Mahanagar Gas Ltd. (MGL) have corrected sharply in past few months.