New Delhi: Compressed Natural Gas (CNG) prices in Delhi and nearby cities have been increased by ₹3.89 per kg, Indraprastha Gas Limited (IGL) announced. The revised prices came into effect from 6 am on Saturday.
IGL said the price revision has become necessary due to a significant increase in input gas costs. A substantial portion of the gas used to supply CNG is sourced through imported liquefied natural gas (LNG).
West Asia Conflict Pushes Up LNG Prices
According to IGL, global spot LNG prices have nearly doubled amid escalating tensions and conflicts in West Asia. Disruptions to LNG cargo movements through the Strait of Hormuz have added further pressure on international gas prices.
The company also said that rising European demand ahead of the winter season has contributed to the increase in global gas prices.
Delhi CNG Price Rises to ₹83.09 Per Kg
Following the latest revision, the retail CNG price in Delhi has increased from ₹77.09 per kg to ₹83.09 per kg, marking an overall increase of around 7.8 per cent.
IGL said the increase in domestic CNG prices remains significantly lower than the rise witnessed in international gas benchmarks.
The European TTF gas benchmark increased from around $11.36 per MMBTU to approximately $23.35 per MMBTU, a rise of nearly 105 per cent.
Similarly, the Asian JKM LNG benchmark climbed from around $10.99 per MMBTU to $23.41 per MMBTU, registering an increase of approximately 113 per cent.
IGL Says Consumers Protected From Full Impact
IGL said Indian consumers have largely been protected from the full impact of volatility in international energy markets.
The company attributed this to strategic sourcing and calibrated price revisions, which it said have helped limit the impact on daily commuters, public transport operators, auto-rickshaw drivers, taxi operators and other price-sensitive vehicle owners.
Imported LNG Helps Meet CNG DemandIGL said India’s rapid economic growth and increasing demand for natural gas have led to greater reliance on imported spot LNG to bridge the domestic CNG supply gap.
Despite the sharp rise in international gas prices, the company said retail CNG prices in Delhi have increased comparatively modestly.
IGL reaffirmed its commitment to optimising sourcing costs and maintaining CNG as an economical, cleaner and dependable fuel for auto-rickshaws, taxis, private vehicles and public transport fleets.