Consumers using compressed natural gas in Delhi-NCR will have to pay more from Aug. 29 after Indraprastha Gas Ltd raised CNG prices by Rs 3.89 per kg. Investors and consumers are watching the move as higher international gas prices and supply disruptions linked to the West Asia crisis push up input costs for city gas distributors.
Following the revision, CNG will cost Rs 86.98 per kg in Delhi. In Noida and Ghaziabad, the revised price will be Rs 95.59 per kg, while consumers in Gurugram will pay Rs 92.01 per kg.
Why Has IGL Hiked CNG Prices?
IGL said international liquefied natural gas prices remain elevated, making the cost impact increasingly significant. The company said the Rs 3.89 per kg increase was necessary to partially offset the rise in input gas costs while maintaining the continuity and reliability of CNG supplies.
The company also pointed to the re-escalation of the West Asia crisis, including the US-Iran war, and its impact on cargo movements through the Strait of Hormuz. According to IGL, global LNG prices have nearly doubled from pre-crisis levels.
Rising CNG Demand Adds To Cost Pressure
IGL said CNG consumption has also increased significantly in line with India's economic growth and rising consumer demand. To meet this demand, a significant portion of the gas used for the CNG segment is being sourced through imported spot LNG, adding to input costs.
The company said CNG prices in Delhi had remained more or less stable during the Hormuz crisis even as international gas benchmarks rose sharply. IGL added that the latest revision still leaves CNG in Delhi among the more economical fuel options for consumers.
The price increase will affect private car owners as well as auto and taxi operators and public transport users across the Delhi-NCR region.
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