Strait of Hormuz Price Spikes
India's energy market is highly interconnected with global events, and one such event is causing CNG prices to rise in Delhi. The Strait of Hormuz, a strategic waterway between Iran and Oman, has been experiencing disruptions due to tensions in the region.
The crisis has led to a surge in international liquefied natural gas (LNG) prices, which have nearly doubled compared to pre-crisis levels. Rising European demand ahead of winter has added further pressure on supplies.
Indraprastha Gas Limited (IGL), the company responsible for supplying CNG in Delhi, has increased prices by ₹3.89 per kilogram, effective from August 29. The move is aimed at ensuring uninterrupted supply rather than fully passing on global costs to consumers.
BJP national spokesperson Syed Shahnawaz Hussain linked the hike directly to the ongoing geopolitical tensions involving Iran and the United States, stating that prices will come down once the situation normalises.