On Monday, April 7, 2025, Indraprastha Gas Limited (IGL) announced an increase in compressed natural gas (CNG) prices, which will keep the market eyes on the company’s shares.
The price of CNG in Delhi has been increased by Rs 1 per kg and other markets including Noida and Ghaziabad by Rs 3 per kg. This is the first increase in CNG prices in Delhi after June 2024.
New rates
- Delhi: Now the price of CNG is ₹ 76.09 per kg
- Noida and Ghaziabad: Now the price of CNG is ₹ 84.70 per kg
Delhi accounts for about 70 percent of the total CNG sales of IGL, while the remaining 30 percent sells from Noida, Ghaziabad and other areas.
Why did prices rise?
This increase has been done after amendment of gas rates under the price mechanism (APM) administered by the government. The price of APM Gas for the period from April to September 2025 has been fixed at $ 6.75 per MMBTU, which is slightly higher than $ 6.5 per MMBTU from January to March 2025.
This increase is the first increase in APM gas rates since April 2023.
Background and committee recommendations
This amendment has been made in accordance with the roadmap given by the Kirit Parikh Committee. The panel recommended that APM gas prices be increased by 4 percent annually from the third year of implementation. This amendment has been made on the basis of these recommendations.
Brokerage firm’s response
Brokerage firm Jefferies said in its analysis on IGL in February that the price hike of Rs 2 per kg would be sufficient to maintain the current margin level. This amendment has come to light by the government just after the APM price hikes by 4 percent.
IGL and MGL shares status
- IGL shares are trading below 30 percent of their highest level.
- MGL shares are also trending with a decline of 33 percent.
Now the market will be eyeing how these companies perform after the price hike.
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The post CNG prices increase, Rs 1 in Delhi and Rs 3 per kg in other cities, gas first appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
