CNG, PNG prices raised on rupee fall

Indraprastha Gas Ltd, the sole supplier of natural gas in Delhi and its suburbs, on Monday raised the price of CNG— compressed natural gas used as auto fuel — by Rs 2 a kg and piped supplies to homes by Re 1 per unit.
This is the second increase in the price of CNG piped home supplies since January. The increase has been revised to cover the rupee's fall against the Greenback, which has pushed up IGL's cost of sourcing gas.

The revision is bound to spark demand for fare hike from public transport operators plying autos, taxis and buses that run on CNG in the city and its suburbs. But IGL said the impact of the latest CNG price hike would be marginal for public transport operators - six paisa per km for autos and 10 paisa per km for taxis as well as private cars. For buses the increase would be 57 paisa per km, which translates to around one paisa per passenger per km.

CNg in Delhi would cost Rs 41.90 per kg against Rs 39.90. The increase would be higher by 25 paisa in Noida, Greater Noida and Ghaziabad due to the incremental increase in local taxes. The new price in these satellite towns would be Rs 47.35 per kg.

The new price of piped gas in Delhi would be Rs 24.50 per unit (scm or standard cubic metres) against Rs 23.50 for consumption of up to 30 units in two months. Beyond 30 scm in two months, piped gas in Delhi would cost Rs 40.50 a unit.
Due to higher taxes in UP, piped gas in Noida, Greater Noida and Ghaziabad would cost Rs 26 per unit, up from Rs 25 a unit for consumption of up to 30 scm in two months. For consumption beyond that level, the price would be Rs 43.

CNG price was last hiked on January 5 when rates went up by Rs 1.55 per kg. PNG price was last hiked on February 10 by Rs 1.50 per scm.

"The recent steep appreciation of the dollar vis-a-vis rupee as well as the increased dependence on imported LNG has resulted in major increase in our input cost of gas, which has necessitated the increase in retail prices of CNG and PNG," IGL said in a statement.

The base price of natural gas being procured by IGL from all its sources — domestic production as well as imported liquid gas (LNG or liquefied natural gas) — are priced in dollar.


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