New Delhi, August 29: Indraprastha Gas Ltd (IGL) on Saturday increased the price of compressed natural gas (CNG) in Delhi by Rs 3.89 per kg, citing a sharp rise in international LNG prices amid the renewed West Asia crisis and disruptions to gas cargo movements through the Strait of Hormuz.
The revised price came into effect from 6 am on August 29, taking CNG in Delhi to Rs 86.98 per kg from Rs 83.09 earlier. The latest hike takes the total increase in Delhi CNG prices this year to nearly Rs 10 per kg. CNG was priced at Rs 77.09 per kg in Delhi at the beginning of the year.
The price had earlier been increased by Rs 6 per kg in four instalments in the second half of May, taking it to Rs 83.09 per kg before Saturday’s hike. Prices have also gone up in neighbouring cities. CNG now costs Rs 95.59 per kg in both Noida and Ghaziabad, while the price in Gurugram stands at Rs 92.01 per kg. Rates vary across states depending on local taxes such as VAT.
However, the price of piped natural gas supplied to households for cooking has remained unchanged at Rs 49.59 per standard cubic metre in Delhi.
IGL said the latest increase came after Delhi’s CNG prices had remained relatively stable despite a sharp rise in international gas benchmarks during the earlier phase of the Hormuz crisis. According to the company, global LNG prices have nearly doubled since July as the renewed crisis has affected LNG cargo movements through the strategic waterway.
IGL said CNG consumers, including private car owners, auto and taxi drivers and public transport users, have largely been insulated from the impact of volatile imported spot LNG prices. The company said rising CNG consumption, in line with India’s economic growth and increasing consumer demand, has also raised the need for imported spot LNG.
IGL said a significant portion of the gas used for the CNG segment is being met through imported spot LNG, resulting in a considerable increase in input costs. The latest price hike was therefore required to partly offset the higher input gas cost while ensuring uninterrupted supplies.
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