CNG price up Rs4.50 per kg in Delhi, PNG to cost Rs5.15 more per kg

The price of compressed natural gas (CNG) sold in the national capital has gone up by a steep Rs4.50 per kg, after the Indraprastha Gas Ltd (IGL) announced a second rate hike in just three months.

IGL, the sole retailer of CNG and PNG in Delhi, also simultaneously raised the price of cooking gas piped to kitchens by Rs5.15 per kg with effect from midnight tonight.

CNG will cost Rs50.10 per kg in Delhi and Rs56.70 per kg in Noida, Greater Noida and Ghaziabad from midnight tonight, IGL said.

While households in Delhi will be charged Rs29.50 per standard cubic metre of piped natural gas, up from Rs27.50, for consumption of 30 scm in two months, the applicable rate for consumption beyond 30 scm would be Rs52 per scm.

The applicable rate for PNG to households in Noida, Greater Noida and Ghaziabad would be Rs31 per scm for up to 30 scm of two months' consumption because of the higher tax levels in Uttar Pradesh. The existing rate is Rs29 per scm.

Beyond the 30 scm consumption level, the rate applicable in these cities would be Rs54 per scm.

The price of CNG sold to automobiles in Delhi was last revised in September when it had gone up by Rs3.70 per kg to Rs45.60 per kg.

The price of piped cooking gas (PNG) sold to households had gone up to Rs27.50 per scm from Rs24.50 per scm.

IGL said the increase was primarily due to increase in input cost as a result of reallocation of domestically produced gas quantities by the government for all city gas distribution companies across the country.

There has been a reduction in allocation of APM gas to us, which is forcing us to source more quantity of market priced imported R-LNG, whose prices are currently on an upswing. This has affected our overall input cost by over 13 per cent," an IGL statement said.

In addition, there has also been an increase in the operating expenses including increase in minimum wages announced by the government with effect from October 2013," the statement added.