IGL shares jumped on Monday, touching a high of Rs 152.39 after the company hiked Delhi CNG prices by Rs 3.89 per kg over the weekend.

The hike took effect from August 29. CNG in Delhi now costs Rs 86.98 per kg, up from Rs 83.09 per kg earlier. The new rate also covers other parts of the National Capital Region that draw gas from IGL.

The company pointed to one reason: imported LNG has become far more expensive.

Prices on the global spot market have nearly doubled since tensions in West Asia flared up in late February, disrupted shipping through the Strait of Hormuz, and pushed up storage demand across Europe.

Two global benchmarks tell the story. Europe’s TTF gas price is up around 105% since the crisis began. Asia’s JKM LNG benchmark has climbed even more, around 113%.

Delhi’s CNG rate, meanwhile, has risen a comparatively modest 7.8% over the same six months. IGL said it would keep working to bring sourcing costs down, so CNG stays affordable without affecting supply.

This year has already tested the company’s margins. CNG sales volumes grew 6% year-on-year in the June quarter, and piped domestic gas volumes rose 7%. Profits didn’t keep pace.

Net profit fell nearly 30% sequentially to Rs 240 crore, and operating profit dropped by a similar margin as gas procurement costs climbed.

The operating margin narrowed to 6.4%, down from 10% the previous quarter. Revenue was the one bright spot, rising 10% to Rs 4,586 crore.

As of 10:26 am on Monday, IGL shares stood at Rs 151, up 2.30% for the day on the NSE.

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