Bharatiya Janata Party (BJP) national spokesperson Syed Shahnawaz Hussain on Saturday stated that the latest hike of Rs 3.89 per kilogram in Compressed Natural Gas (CNG) prices is a direct result of escalating geopolitical tensions between the United States and Iran, which have disrupted supply routes through the strategic Strait of Hormuz.

The statement came as Indraprastha Gas Limited (IGL) revised retail CNG prices in Delhi upwards by Rs 3.89 per kilogram, effective from 6 am on August 29. The city gas distributor attributed the adjustment to a sharp surge in international spot liquefied natural gas (LNG) prices, driven by conflict in West Asia and maritime shipping disruptions.

BJP Attributes Hike to Global Supply Disruptions

Addressing the price adjustment, Hussain explained that India’s heavy reliance on energy imports leaves domestic retail fuel markets vulnerable to sudden international supply contractions and shipping bottlenecks.

“The prevailing global situation, including the closure of the Strait of Hormuz and the ongoing tensions between the US and Iran, impacts markets worldwide, and India is affected as well. Our heavy reliance on imports means that a shortage of CNG creates difficulties; thus, prices have risen slightly. Once the situation normalises, prices will come down,” Hussain told ANI.

Expressing optimism regarding future price stability, the BJP leader emphasised that the government is closely monitoring developments in West Asia, adding that retail rates are expected to ease once diplomatic and maritime conditions improve.

Global Spot LNG Prices Surge

According to a statement issued by IGL, international Spot LNG benchmarks have almost doubled in recent months due to severe supply chain disruptions. The European TTF Gas Benchmark surged by approximately 105 per cent, rising from $11.36 to $23.35 per MMBTU, while Asia’s JKM LNG Benchmark jumped nearly 113 per cent, moving from $10.99 to $23.41 per MMBTU.

Despite international market volatility, IGL highlighted that domestic price increases have been modest to cushion consumers. Retail CNG prices in Delhi have risen from Rs 77.09 per kilogram to Rs 83.09 per kilogram over recent months, representing an increase of roughly 7.8 per cent, maintaining Delhi’s position among the cities with the lowest retail CNG rates globally among gas-importing nations.

The latest revision follows successive price hikes earlier this year, including a cumulative increase of Rs 6 across four revisions within a 15-day period in May. The progressive adjustments aim to partially offset soaring input costs while maintaining an uninterrupted fuel supply for commuters relying on CNG-powered vehicles.

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