IGL Hikes Delhi CNG Price 4.7% as Spot LNG Nearly Doubles
IGL raised Delhi CNG prices 4.7% to ₹86.98/kg as global spot LNG nearly doubled on West Asia supply disruptions and European winter demand. The hike covers only part of the input cost surge.
Indraprastha Gas Ltd. raised Compressed Natural Gas (CNG) prices in Delhi by ₹3.89 per kilogram, effective 6 a.m. Saturday, the company said in a press release. The increase brings the retail price to ₹86.98 per kg from ₹83.09 per kg, a 4.7% rise.
The revision follows a near doubling of global spot LNG prices, driven by the re-escalation of the West Asia crisis and disruption of cargo movements through the Strait of Hormuz, IGL said. European demand ahead of winter has added upward pressure.
“With international LNG prices remaining elevated and the cost impact becoming increasingly significant, a calibrated revision of ₹3.89 per kg has now become necessary to partially offset the increase in input gas cost,” IGL said in the release.
IGL noted that while international gas benchmarks have surged over recent months, retail CNG prices in Delhi have risen only modestly. The company’s Delhi retail price climbed from ₹77.09 per kg to ₹83.09 per kg over the period, a roughly 7.8% increase, while the TTF gas benchmark in Europe jumped from about $11.36 per MMBtu to $23.35 per MMBtu, a 105% surge. The Asia JKM LNG benchmark rose 113%, from $10.99 to $23.41 per MMBtu.
The piped natural gas (PNG) retail price in Delhi remains unchanged at ₹49.59 per standard cubic meter, IGL said.
IGL attributed the need for imported spot LNG to fast-paced economic growth and rising consumer demand for CNG. “In order to meet this rising demand for CNG, a significant portion of input gas for the CNG segment is being met through imported Spot LNG,” the company said.
Despite the increase, IGL said Delhi has one of the lowest CNG retail prices among gas-importing countries. The company reaffirmed its commitment to optimizing sourcing costs to keep CNG economical for auto-rickshaws, taxis, private vehicles, and public transport fleets.
The price adjustment comes as global LNG markets face supply risks ahead of the northern hemisphere winter. IGL’s press release cited the urgency in Europe to increase natural gas storage as a factor behind the elevated spot prices.
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