Daijiworld Media Network - New Delhi
New Delhi, Aug 29: CNG prices in Delhi and adjoining cities will increase by Rs 3.89 per kg from 6 am on Saturday, Indraprastha Gas Ltd (IGL) said on Friday.
The company attributed the price hike to a sharp increase in the cost of imported liquefied natural gas (LNG), which accounts for a significant portion of the gas used to supply CNG.
According to IGL, spot or current-market prices of LNG have surged since the beginning of the West Asia conflict, pushing up input costs for the company.
"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 in a statement.
The revised CNG prices will take effect from 6 am on Saturday across Delhi and adjoining cities supplied by IGL.
The latest increase is expected to raise transportation costs for CNG-powered vehicles, including private cars, taxis, auto-rickshaws and commercial fleets.
The company said the revision was necessary to partially absorb the higher cost of natural gas amid elevated international LNG prices.