IGL Hikes CNG Prices in Delhi-NCR Amid Rising LNG Costs
IGL raises CNG prices in Delhi-NCR due to higher LNG costs. The hike comes after international LNG prices nearly doubled since July. IGL, which supplies CNG to several cities in the NCR region, has increased prices by Rs 3.89 per kg. This is the fifth price hike this year, with prices now standing at Rs 86.98 per kg in Delhi and Rs 95.59 per kg in Noida and Ghaziabad.
The Asia-JKM LNG benchmark, a key indicator of spot LNG prices in Asia, has risen from $11 per million British thermal units (MMBTU) in February to $23.4 per MMBTU in August. This increase is attributed to the renewed escalation of tensions in West Asia, which has disrupted cargo movements through the Strait of Hormuz.
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.