CNG price in NCR hiked by Rs 2.90 per kg

CNG price in NCR hiked by Rs 2.90 per kg

To cost Rs 38.35 per kg, supplier cites rising cost of buying gas from abroad

The price of compressed natural gas in the Capital and adjoining towns was hiked on Friday by a steep Rs 2.90 per kg, the third increase in rates this year.

CNG in Delhi will cost Rs 38.35 per kg with effect from Friday midnight, stated Indraprastha Gas Ltd (IGL) in a statement released late on Friday. IGL is the sole retailer of CNG and piped natural gas in the Capital.

Earlier, the price was hiked by Rs 1.75 per kg on January 1, and by Rs 1.90 per kg on March 6.
IGL, which hiked the price of CNG sold to automobiles in Noida, Greater Noida and Ghaziabad by Rs 3.30 per kg, stated that the increase was necessitated due to a fall in the value of the rupee and rising cost of imported gas. People in these three cities will now have to pay Rs 43.10 per kg.

IGL has been importing liquefied natural gas (LNG) after supplies from Reliance Industries’ KG-D6 gas fields dried up. Imported fuel costs at least three times more than the $4.20 per million British thermal unit rate fixed for domestic gas.

City gas distributors such as IGL are not getting any supplies from KG-D6 since September 2011, after a 40 per cent output drop forced the government to cut supplies to non-priority sectors so that the requirement of power and fertiliser plants can be fully met.

“IGL is constrained to announce increase in the price of CNG since the input cost of the entire pool of natural gas has risen substantially since the last price revision due to appreciation of the dollar against the rupee (up to 14 per cent), and the increased dependence on imported LNG,” the company stated.

There has also been an increase in cost due to a massive hike of over 23 per cent in electricity tariff and also in minimum wages announced by the government. IGL stated that this increase will have a minor impact on the per kilometre running cost of vehicles in Delhi.

“For autos, the increase will be 8 paisa per km; for taxis it will be 14 paisa per km and in case of buses, the increase will be 83 paisa per km, which translates to less than two paisa per passenger per kilometre,” the statement added.

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