CNG and PNG Prices Jump in Delhi and Mumbai Amid West Asia Crisis

In August 2026, tensions in the Middle East began affecting global energy markets. India, which relies heavily on imported liquefied natural gas (LNG), started to feel the impact. According to Business Line, Indraprastha Gas Limited (IGL) cited the ongoing West Asia crisis for rising costs, as disruptions in supply chains and increased competition for natural gas pushed up prices.

This situation set the stage for fuel price hikes in two of India's largest cities, Delhi and Mumbai. The rising costs directly threatened the affordability of public transport and household gas, as both CNG (Compressed Natural Gas) for vehicles and PNG (Piped Natural Gas) for homes depend on these imports.

On August 28, 2026, Indraprastha Gas Limited announced that CNG prices in Delhi would rise by ₹3.89 per kilogram, effective from 6 AM on August 29. The new price reached ₹86.98 per kg, as reported by India Today and Times of India India. This marked the fifth CNG price hike in Delhi since the beginning of the year.

Auto-rickshaw and taxi unions in Delhi quickly responded. Mint reported that unions demanded fare hikes to offset their increased costs, threatening strikes if their demands were not met. Drivers told The Hindu that the price rise was cutting into their daily earnings and called for both higher fares and more access to electric vehicles.

Meanwhile, Mumbai residents faced similar shocks. On August 31, Mahanagar Gas Ltd announced it would raise CNG prices by ₹2 per kg and PNG prices by ₹1 per SCM, with new rates effective from midnight, as noted by The Hindu and Dainik Bhaskar National. The new CNG price in Mumbai reached ₹88 per kg. The increases were again attributed to higher gas costs caused by tensions in the Middle East.

By September 1, Times of India reported that Mumbai commuters also faced higher auto and taxi fares, as well as increased milk prices. Drivers were given until November-end to recalibrate their meters or display updated fare tables, according to Business Line.

As of September 1, 2026, commuters in both Delhi and Mumbai are paying more for CNG, PNG, and public transport. In Delhi, unions are still pushing for fare hikes to match the increased fuel costs. In Mumbai, new auto and taxi fares are in effect, and drivers are adjusting their meters.

The fuel price hikes continue to squeeze household budgets and transport operators. Both cities are watching the Middle East situation closely, as any further supply disruptions could lead to more price increases.

The key questions now are whether Delhi authorities will approve new fare rates for auto and taxi services, and how quickly these changes will reach commuters. Further instability in the Middle East could drive prices even higher, affecting more cities and sectors.