IGL hikes CNG prices for the third time this year

In a move that is seen to likely lead to increase in public transport fares, the Indraprastha Gas Limited (IGL) has hiked the selling price of Compressed Natural Gas (CNG) in Delhi by Rs2.90 per kg and in neighbouring Noida, Greater Noida and Ghaziabad by Rs3.30 from today.

A joint venture of GAIL (India) Ltd, BPCL and Government of Delhi, the company said yesterday that the revision in price had been effected since the input cost had increased substantially after the last price revision in March 2012 due to appreciation of dollar vis--vis the rupee and due to the increased dependence on imported Spot R-LNG.

According to IGL, there had been an increase in cost due to a massive hike of over 23 per cent in electricity tariff and also due to minimum wages announced by the government.

The new price of CNG in Delhi would now be Rs38.35 per kg while in Noida, Greater Noida and Ghaziabad, CNG would cost Rs43.10 per kg.

While the entire public transport of Delhi ran on CNG, the hike is likely to lead to increased demand for hiking fares of buses, autorickshaws and taxis. However, according to IGL, the impact of the hike would be ''minor'' on the per km running cost of vehicles in Delhi.

Giving out figures, it said autos would face increased cost of 8 paise per km, taxis would be faced with 14 paisa per km and in case of buses, the increase would be 83 paisa per km, which translated to under two paisa per passenger – km.