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Prices increased in Noida-Ghaziabad also

After the implementation of the new price, CNG will be available at ₹ 95.59 per kg in Noida and Ghaziabad. Whereas the price will be ₹ 95.47 in Meerut and ₹ 92.01 per kg in Gurugram. CNG prices differ in different cities. A major reason for this is the different VAT rates applicable across states.

IGL says that despite the increase in price, CNG remains an affordable option for consumers compared to other fuels. However, due to the continuous increase, the monthly expenses of those driving CNG vehicles are sure to increase.

Cost increased due to increase in cost of LNG

According to IGL, the biggest reason behind increasing the price of CNG is the increasing import cost of LNG and the rise in international gas prices. Apart from this, the demand for CNG is also continuously increasing. To meet the demand, a large part of the input gas in India is being met by imported spot LNG.

Impact of Hormuz Strait crisis also

The company said that the increasing crisis in West Asia has had an impact on the LNG supply and freight transportation through the Strait of Hormuz. Global LNG prices have almost doubled compared to before the crisis. At the same time, the need to increase gas reserves before winter in Europe has also increased pressure on prices.

Prices had increased earlier this year also

Earlier in May, international energy prices had risen during the Middle East conflict. At that time, IGL had increased the price of CNG by a total of ₹ 6 per kg in four phases within about 10 days. Now with the new increase of ₹3.89, CNG prices have increased for the fifth time this year.