Delhi CNG price hiked by ₹3.89 per kg as global LNG prices surge amid West Asia crisis

Delhi's CNG prices were raised by ₹3.89 per kilogram on Saturday, bringing the retail price to ₹86.98 per kilogram from ₹83.09, as reported by Indraprastha Gas Limited (IGL). This price hike occurred due to a surge in international liquefied natural gas (LNG) prices following the West Asia crisis, according to IGL. The revised prices will be implemented across all regions supplied by the company.

IGL stated that Delhi's CNG prices had remained relatively stable during the Hormuz crisis, when international gas benchmarks experienced sharp increases. Over the period from late February to August 27, the retail price for Delhi CNG rose by approximately 7.8%, from ₹77.09 to ₹83.09 per kilogram. During the same timeframe, Europe's TTF gas benchmark rose by around 105%, while Asia's JKM LNG benchmark increased by approximately 113%, as per the company.

IGL emphasized that CNG consumers, including private car owners, auto and taxi users, public transport passengers, and other price-sensitive individuals, are largely insulated from the effects of volatile imported spot LNG price increases. In cities like Delhi, which imports gas, CNG prices are among the lowest globally.

The company attributed the price increase to several factors, including a nearly doubling of global LNG prices since July compared to pre-crisis levels and disruptions in LNG cargo movements through the Strait of Hormuz. Additionally, heightened demand for natural gas storage in Europe ahead of the winter season has put pressure on international prices.

IGL noted that a significant portion of the gas used to meet the growing demand in the CNG segment is sourced through imported spot LNG. Consequently, the higher international prices have led to increased input costs for city gas distributors. The ₹3.89 per kilogram price increase was deemed necessary to partially offset these higher input gas costs while maintaining the continuity and reliability of CNG supplies. The company pledged to continue optimizing sourcing costs.