LNG costs shoot up; IGL hikes CNG prices by Rs 3.89/kg in Delhi-NCR
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Photo: IANS
New Delhi: Due to a significant increase in the price of imported liquefied natural gas (LNG), Indraprastha Gas Limited (IGL) raised the price of compressed natural gas (CNG) by Rs 3.89 per kg throughout Delhi-NCR.
With the latest revision effective Saturday, CNG will now cost Rs 86.98 per kg in Delhi. Prices have been raised to Rs 95.59 per kg in Noida and Ghaziabad, Rs 95.47 per kg in Meerut and Rs 92.01 per kg in Gurugram, IANS reported.
The latest increase marks the fifth CNG price hike by IGL this year and the first since May. In May, the company raised CNG prices by a cumulative Rs 6 per kg in four phases over 10 days as global energy prices climbed amid the West Asia conflict.
The fresh increase comes as international LNG prices have risen sharply following the renewed escalation of tensions in West Asia, which has disrupted cargo movements through the Strait of Hormuz. Sources said global LNG prices have nearly doubled since July compared with levels prevailing before the conflict.
The Asia-JKM LNG benchmark, a key indicator for spot LNG prices in Asia, has climbed from around $11 per million British thermal units (MMBTU) in February to $23.4 per MMBTU in August. European TTF gas prices have followed a similar trajectory, rising from around $11.3 per MMBTU to $23.3 per MMBTU during the same period.
The pressure on global gas prices has also been intensified by preparations for the winter season in Europe. European buyers are building up LNG inventories to meet higher seasonal demand, adding further competition for available cargoes and pushing prices higher.
The increase in CNG prices is likely to add to transportation costs across the Delhi-NCR region, where auto-rickshaws, taxis and a large number of commercial and goods vehicles rely on CNG. Previous increases in the fuel price have also had an impact on freight and passenger fares.
CNG prices differ across cities because of variations in state-level value-added tax structures. The latest hike therefore comes at a time when transport operators are already facing pressure from higher fuel and operating costs.
The continued rise in international gas prices could keep pressure on domestic CNG prices in the coming months, particularly if geopolitical tensions persist and global LNG markets remain tight.