Energy Shock: CNG price hiked by Rs 3.89 per kg in Delhi

In a move that will come as a shock to the common man, the Indraprastha Gas Ltd (IGL) has increased CNG price in Delhi and adjoining cities. IGL has announced a price hike of Rs 3.89 per kg. The revised rates will be effective from 6 am today.

The move comes on the back of high LNG prices in the spot market. This is the fifth price hike by IGL in the wake of the West Asia crisis. The first four hikes took place in May this year in quick succession over two weeks.

"A significant portion of input gas for CNG is being met through imported LNG, whose rates in the spot or current market have seen a surge since the beginning of the West Asia conflict," IGL said in a statement short while ago.

"With international LNG prices remaining elevated and the cost impact becoming increasingly significant, a calibrated revision of Rs 3.89 per kg has now become necessary to partially offset the increase in input gas cost," IGL said.

Since CNG is widely used by transport vehicles, there will be a major ripple impact on the prices of food, vegetables due to higher overall transport cost.

In the wake of the West Asia crisis, the government has increased petrol prices to lower the losses by the oil marketing companies in the wake of the rising crude oil prices. However, the government took a calibrated approach to fuel price hike in order to ensure minimal impact on the common man.