CNG price in Delhi raised by Rs2.95 per kg, PNG to cost Re1 more per unit

Prices of compressed natural gas (CNG) and piped natural gas (PNG) in the national capital have been raised by Rs2.95 per kg and Re1 per standard cubic metre, respectively, due to a rise in input costs.

CNG price, which was cut by a steep Rs14.90 per kg in February, will cost Rs38.15 per kg from Saturday as against the current rate of Rs35.20.

The new rate for piped natural gas (PNG) that households in Delhi use for cooking has been revised from Rs24.50 per scm to Rs25.50 per scm up to consumption of 36 scm in two months. Beyond consumption of 36 scm in two months, the applicable rate in Delhi would be Rs48 per scm.

CNG prices will, however, cost Rs43.50 in neighbouring Noida, Greater Noida and Ghaziabad due to differential tax structure in Uttar Pradesh, Indraprastha Gas Ltd (IGL) said.

IGL, the sole supplier of CNG and PNG in national capital region, said PNG to households in Noida, Greater Noida and Ghaziabad would cost Rs27.30 per scm for consumption of 36 scm in two months, against the existing Rs26.20 per scm.

Beyond consumption of 36 scm in two months, the rate applicable in these cities would be Rs48.75 per scm, IGL said.

"We are constrained to revise the retail price of CNG and PNG mainly due to increase in the overall input cost of natural gas being sourced by us," IGL said.

IGL said in addition to hike in input gas price, minimum wages as well as power tariff have gone up in the capital.

"Since there has been no change in the domestic gas allocation to IGL and is expected to remain at existing level in the near future as well, the increase in gas consumption is being met through higher priced imported LNG."

The price of CNG was last hiked on December 27, 2013 when it was raised by Rs4.50 per kg. The price of cooking gas had gone up by Rs5.15 then.

However, the hike was nullified following a steep cut of Rs14.90 per kg in CNG rates and Rs5 per unit in PNG prices as government increased allocation of cheaper domestic gas to IGL.

This increase would not have a major impact on the per km running cost of vehicles, IGL claimed.

For auto rickshaws, the increase would be 8 paise per km, while for taxis it would be 13 paise per km. In case of buses, the increase would be 80 paise per km, which translates to just over 1 paisa per passenger-km, it pointed out.