CNG costs more in Delhi from today

Indraprastha Gas Limited (IGL), Delhi's only supplier of compressed natural gas (CNG), has said that it has incremented CNG rates in Delhi to Rs21 per kg from the current Rs18 per kg. The new price will come into effect from midnight and will be felt today.

The increase in price will translate into increase in costs of public transport. For auto rickshaws, the increase amounts to 6 paisa per kilometre, and for taxis 10 paisa per km. Bus fares would increase by 60 paisa per km, or  one paisa per passenger/km.

Commenting on the price hike, Rajesh Ved Vyas, managing director, IGL, said, ''We had to increase the price of CNG after three years, mainly because of the increase in the overall input cost of natural gas sourced by IGL and due to the rise in operating costs. Still, only half the operating expenses are being passed on to the consumers.''

IGL is a joint venture of GAIL (India), Bharat Petroleum Corporation and the Government of the National Capital Territory of Delhi. Established as a non-government company, it manages the CNG expansion programme and the piped natural gas project in the domestic and commercial sectors.

According to some observers, the price increase resulted from IGL's costs rising by about Rs2 per kg, including taxes and levies. However, even at the hiked rate, Delhi would still supply the cheapest CNG in the country.

CNG has become a popular alternative to petrol as it works out cheaper. A bus manages about 3.5km from 1 kg of CNG, auto-rickshaws do 35km, while cars can go up to 20km.

The previous hike in CNG rates took place in June 2006 when the price went up from Rs18 to Rs19.20. A reduction in excise duty saw the prices dropping to Rs18.90.

According to IGL's website, the company fuels over 250,000 vehicles including over 12,000 buses, 85,000 three wheelers and over 1,50,000 private cars. It supplies online cooking gas to around 1,40,000 households, and provides energy solutions to major 5-star hotels, hospitals, embassies and restaurants.