The cooking gas distribution company, Indraprastha Gas Ltd (IGL) on Monday increased the CNG price by ₹2.5 per kg as reported by news agency ANI. The new price came into effect on Monday, April 04. The company in its official statement claimed that this increment is done to cover the hike in input gas cost.
Earlier, on 1 April, the CNG price was increased by 80 paise per kg. IGL sources natural gas from domestic fields as well as buy imported LNG. LNG in the spot or current market touched record highs in recent months and on Thursday, March 31, the government raised the price of gas produced from local fields to a record USD 6.10 per million British thermal units from USD 2.9.
This has pushed costs for IGL, necessitating the price hikes, industry sources said. Prices have gone up by about ₹11.00 per kg this year alone.
The increase in CNG prices follows a ₹8.40 per liter hike in petrol and diesel prices in two weeks and a ₹50 per cylinder raise in the cooking gas LPG rates.