CNG Price Hike: Major setback for people. CNG prices are about to increase in Delhi and nearby cities. Indraprastha Gas Limited (IGL) has announced that starting at 6 a.m. today (Saturday), CNG prices will rise by Rs 3.89 per kilogram. This price hike will impact CNG users in Delhi and the surrounding NCR areas. The new rates will take effect from 6 a.m. today.
On Friday, Indraprastha Gas Limited (IGL) confirmed that the price of CNG will go up by Rs 3.89 per kg in Delhi and nearby cities starting Saturday (today). IGL explained in a statement that a significant portion of the gas used for CNG is sourced from imported LNG, and its prices have surged in the spot market since the conflict in West Asia began.
Changes in CNG prices are effective from this morning. IGL noted that international LNG prices remain elevated, which has greatly affected costs, necessitating a partial adjustment of ₹3.89 per kilogram to offset the rise in input gas expenses. The company reiterated that this adjustment in CNG prices will be in effect from 6 a.m. today.
This marks the fifth increase in CNG prices this year. This is the fifth time CNG prices have risen this year and the first increase since May. In May, IGL raised CNG prices by a total of ₹6 per kg over four phases within 10 days due to a global surge in energy prices linked to the ongoing conflict in West Asia.
Currently, CNG is priced at Rs 95.59 per kg in Noida and Ghaziabad, Rs 95.47 per kg in Meerut, and Rs 92.01 per kg in Gurugram. Similar to petrol and diesel, CNG prices differ across states due to varying value-added tax (VAT) structures.
Impact of rising prices on passenger fares. The increase in CNG prices has affected freight and passenger fares in Delhi-NCR, as most auto-rickshaws, taxis, and freight vehicles rely on this clean fuel. Sources indicate that since July of this year, global LNG prices have doubled compared to pre-conflict levels, largely due to the renewed crisis in West Asia, which has disrupted cargo movement through the Strait of Hormuz.
Europe is currently stockpiling LNG. The Asia-JKM LNG benchmark has surged from approximately $11 per million british thermal units (MMBTU) in February this year to $23.4 in August, while the European TTF gas benchmark has also risen from around $11.3 per MMBTU to $23.3 per MMBTU. Europe is stockpiling large quantities of LNG as winter approaches, pushing up prices.