The price of CNG (Compressed Natural Gas) was hiked by Rs 3.89 per kg in Delhi and adjoining cities from Saturday, Indraprastha Gas Ltd (IGL) announced.
The price of CNG in Delhi-NCR will now stand at Rs 86.98 per kg.
In a statement, IGL said a significant portion of the input gas used for CNG is sourced through imported LNG, whose prices in the spot market have surged since the beginning of the West Asia conflict.
“With international LNG prices remaining elevated and the cost impact becoming increasingly significant, a calibrated revision of Rs 3.89 per kg has now become necessary to partially offset the increase in input gas cost,” it said.
The revision comes as global spot LNG prices have nearly doubled amid escalating conflicts in West Asia, which have disrupted cargo movements through the Strait of Hormuz.
“Additionally, there is an urgency in Europe to increase their natural gas storage on account of the approaching winter season,” IGL said.
Despite volatility in the global market, IGL said, Indian consumers had largely been insulated from the impact.
“Even after this revision... CNG retail price in Delhi continues to be amongst the most economical options for consumers,” it noted.
IGL further said CNG consumption was witnessing a significant increase, in line with India’s fast-growing economy and rising consumer demand.
“In order to meet this rising demand for CNG, a significant portion of input gas for the CNG segment is being met through imported Spot LNG. [These] factors have resulted in a considerable increase in input gas cost for CNG segment,” it said.
