New Delhi: Indraprastha Gas Limited (IGL) has increased the price of compressed natural gas (CNG) for the second time in three days, a move that may push up freight and passenger fares in the capital.The price of CNG in the national capital increased by Re 1 per kg, from Rs 88.09 to Rs 89.09, on Sunday. IGL had earlier raised retail CNG prices by Rs 2 per kg on May 15, when oil companies also increased petrol and diesel prices.It is now priced at Rs 88.70 per kg in Noida and Ghaziabad, and Rs 85.12 per kg in Gurgaon.Officials said the input cost of gas has increased by more than Rs 10 per kg since Feb amid disruptions in energy supplies arising from geopolitical tensions in West Asia. The share of higher-priced NWG (new well gas) in the domestic gas allocation basket has increased relative to cheaper administered price mechanism (APM) gas with effect from May 16, leading to a rise in the blended cost of domestically supplied natural gas. The US dollar has also appreciated from around Rs 91 to Rs 96 over the past four months, increasing expenditure on imported LNG procurement.The revision comes at a time when global LNG prices have risen sharply since Feb. Spot LNG prices have increased by over 60% — from around $10-11 per mmBtu in Feb to nearly $18 per mmBtu in mid-May — amid supply concerns and shipping constraints. Nearly a fifth of global energy supplies pass through the critical Strait of Hormuz, where disruptions linked to the US-Israel conflict with Iran since March have heightened concerns over supplies.The gas retailer said the revised CNG prices will marginally offset the impact of rising input gas costs and the sharp appreciation of the US dollar. “Even after the revision, CNG would still offer up to 45% savings in running costs compared to vehicles running on alternate fuels at the current price levels,” IGL said.The increase is expected to impact both freight and passenger movement in the capital, as all cabs, auto-rickshaws and goods carriers registered in Delhi run on CNG. While auto and cab fares are regulated by govt through a fixed pricing mechanism, drivers have already started charging passengers extra, citing the increase in input costs.The price of piped natural gas (PNG), however, remains unchanged since April 1.
