The prices of compressed natural gas (CNG) were raised by ₹1 to ₹75.09 per kg, effective Saturday morning, in Delhi and the national capital region (NCR).

In Noida, Greater Noida, and Ghaziabad, the price has increased to ₹79.70 per kg from ₹78.70 per kg. The price of CNG has also been raised by ₹1 in Ajmer, Pali, Rajsamand, Rewari, Meerut, Muzaffarnagar and Shamli.

India’s gas demand remained robust at 197 million standard cubic meters per day (MSCMD) in April 2024, compared to 195-196 MSCMD during January-March 2024, led by strong LNG demand in the power segment.

India’s LNG demand continued to strengthen in April 2024 with sustained moderation in spot LNG prices, driven by power, CGD and fertiliser segments, according to JM Financial.

The city gas distribution (CGD) sector gas demand improved slightly M-o-M as LNG demand rose to offset reduction in APM gas allocation.

Rising prices

However, Asian spot LNG price has risen recently to around $12 per million British thermal units (mbtu), or in line with historical average of around 15 per cent of Brent, on account of continued strong cooling demand amidst high temperatures in Southeast Asia and China.

Though spot LNG price is still relatively lower against other alternative fuel prices, it is at a premium compared to LPG/Propane price.

Sustained rise in Asian spot LNG prices could be a concern for all gas companies, particularly for CGD companies as spot LNG’s pricing power against propane has reduced recently.

Besides, the low-cost APM gas allocation is also gradually declining for the CNG/domestic PNG segment, JM Financial added.

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