IGL Hikes CNG Prices by Rs 3.89/kg Amid LNG Cost Surge
Indraprastha Gas Limited (IGL) has increased compressed natural gas (CNG) prices by Rs 3.89 per kg in Delhi-NCR, citing a sharp rise in liquefied natural gas (LNG) costs.
The latest price revision took effect on Saturday and sees CNG now costing 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.
This marks the fifth CNG price hike by IGL this year, with the first increase happening in May when prices were raised by a cumulative Rs 6 per kg over four phases within ten days due to rising global energy costs amid the West Asia conflict.
The increased cost is attributed to international LNG prices nearly doubling since July compared to levels before the conflict. The Asia-JKM LNG benchmark has climbed from around $11 per million British thermal units (MMBTU) in February to $23.4 per MMBTU in August, while European TTF gas prices have followed a similar trajectory.
The pressure on global gas prices is intensified by preparations for the winter season in Europe, where buyers are building up LNG inventories to meet higher seasonal demand, adding further competition for available cargoes and pushing prices higher.