IGL Hikes CNG Prices by Rs 3.89/kg Amid Global LNG Price Surge

Indraprastha Gas Ltd (IGL) has raised the price of compressed natural gas (CNG) in Delhi by Rs 3.89 per kg, citing a sharp rise in international LNG prices following the renewed West Asia crisis and disruptions to gas cargo movements through the Strait of Hormuz.

The hike takes effect from August 29 and brings the CNG price in Delhi to Rs 86.98 per kg, up from Rs 83.09 per kg earlier. This marks a cumulative increase of nearly Rs 10 per kg in Delhi CNG prices this year.

IGL stated that global LNG prices have nearly doubled since July due to the renewed crisis affecting LNG cargo movements through the strategic waterway. The company emphasized that it has been maintaining competitive CNG prices despite soaring imported spot gas prices, enabling sustained growth of CNG consumption in India.

CNG consumers are largely being insulated from the impact of volatile increases in imported spot LNG prices, according to IGL. However, the company noted that rising CNG consumption, driven by India's economic growth and increasing consumer demand, has increased the requirement for imported spot LNG.