Compressed natural gas (CNG) prices in Delhi increased by ₹3.89 per kg on Saturday, taking the retail price to ₹86.98 per kg from ₹83.09, Indraprastha Gas Limited (IGL) said on Friday.
The increase comes amid a sharp rise in international liquefied natural gas (LNG) prices following the escalation of the West Asia crisis, IGL said, adding that the revised prices will apply across all geographical areas supplied by the company.
IGL said Delhi’s CNG prices had remained relatively stable during the Hormuz crisis when international gas benchmarks rose sharply. Between late February and August 27, the Delhi CNG retail price increased by around 7.8%, from ₹77.09 to ₹83.09 per kg. During the same period, Europe’s TTF gas benchmark rose around 105%, while Asia’s JKM LNG benchmark increased around 113%, according to the company.
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“CNG consumers (private cars, auto and taxi, public transport users and other price-sensitive sections of society) are largely being insulated from the impact of volatile increases in imported spot LNG prices. Amongst gas importing countries like ours, Delhi has one of the lowest CNG retail prices in the World,” the IGL statement said.
{{/usCountry}}“CNG consumers (private cars, auto and taxi, public transport users and other price-sensitive sections of society) are largely being insulated from the impact of volatile increases in imported spot LNG prices. Amongst gas importing countries like ours, Delhi has one of the lowest CNG retail prices in the World,” the IGL statement said.
{{/usCountry}}Global LNG prices have nearly doubled since July compared with the pre-crisis period, with disruptions affecting LNG cargo movements through the Strait of Hormuz, it added. It also cited increased demand for natural gas storage in Europe ahead of the winter season as another factor putting pressure on international prices.
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According to IGL, a significant portion of the gas used to meet rising demand in the CNG segment is sourced through imported spot LNG. The increase in international prices has therefore resulted in higher input costs for city gas distributors.
The company said the ₹3.89 per kg increase was necessary to partially offset the higher input gas cost while maintaining continuity and reliability of CNG supplies.
IGL said it would continue efforts to optimise sourcing costs.