|
BJP national spokesperson Syed Shahnawaz Hussain on Saturday said that the recent CNG price hike of Rs 3.89 was due to the ongoing geopolitical tensions between Iran and the US, which have resulted in the closure of the Strait of Hormuz.
Speaking to ANI, Hussain said, "The prevailing global situation, including the closure of the Strait of Hormuz and the tensions between the US and Iran, impacts markets worldwide, and India is affected as well. Since we rely heavily on imports, a shortage of CNG creates difficulties; that is why prices have risen slightly. Once the situation normalises, prices will come down." This comes after Indraprastha Gas Limited (IGL) announced a calibrated price revision of Rs 3.89 per kg for Compressed Natural Gas (CNG) in Delhi, effective from 6:00 AM on August 29, according to the IGL press release. The minor adjustment comes as global Spot LNG prices nearly double due to escalating conflicts in West Asia disrupting LNG cargo movements through the Strait of Hormuz, alongside rising European demand ahead of the winter season. Despite severe international market volatility, IGL has largely insulated Indian consumers, ensuring Delhi maintains among the lowest retail CNG prices worldwide compared to other gas-importing nations, the release added. A revision of 3.89 per kg takes effect at 6:00 AM on August 29, 2026, to partially offset rising input gas costs and ensure uninterrupted supply. Fast-paced economic growth and rising consumer demand have increased reliance on imported Spot LNG to meet the CNG supply gap. While international gas benchmarks doubled over recent months, retail prices in Delhi experienced only a minor single-digit percentage increase. Delhi CNG (IGL Retail) rose gradually from 77.09/kg to 83.09/kg, representing a modest ~7.8% increase. Europe (TTF Gas Benchmark) escalated from ~$11.36/MMBTU to ~$23.35/MMBTU, marking a massive surge of ~105%. Asia (JKM LNG Benchmark) jumped from ~$10.99/MMBTU to $23.41/MMBTU, reflecting a sharp rise of ~113%. The latest revision comes after successive hikes in recent months. In May, CNG prices were hiked by Rs 6 across four separate revisions in less than 15 days, adding to the financial strain on commuters using CNG-powered vehicles. (ANI)
|
