Non-subsidised LPG prices cut by Rs100 per cylinder, piped gas to cost more
01 July 2019
State-run oil marketing companies have announced a substantial reduction in the price of liquefied natural gas (cooking gas), even as piped natural (cooking) gas (PNG) price in Mumbai has been raised by 23 paise per standard cubic metre and that of compressed natural gas (CNG) by 32 paise per kg effective today (1 July).
The price of non-subsidised cooking gas (liquefied petroleum gas) in Delhi has been cut by Rs100.50 per 14.2 kg cylinder effective 1 July 2019, an IndianOil statement released on Sunday showed.
The price reduction is based on LPG prices in international market and dollar-rupee exchange rate. Accordingly, the upfront cash payment by the consumer of domestic LPG will also be reduced by Rs100.50 per cylinder, IndianOil stated.
A domestic LPG consumer will now be required to make an upfront cash payment of Rs637 per cylinder in July 2019 in place of Rs737.50 a cylinder paid during June 2019.
As domestic LPG prices are subsidised through the Direct Benefit Transfer Programme, the effective price after subsidy to a consumer will be Rs494.35 per cylinder for July 2019. During June 2019, consumers paid Rs497.37 per cylinder after the subsidy.
For July 2019, the centre will bear a subsidy of Rs142.65 a cylinder and that will be transferred to the bank account of LPG consumers after purchase and delivery of a refill.
Mahanagar Gas (MGL) has hiked the prices of compressed natural gas (CNG) and domestic piped natural gas (PNG) in Mumbai and the surrounding area by 32 paise/kg and 23 paise/standard cubic meter, respectively, with effect from 1July.
The price of CNG will be hiked to Rs51.99 per kg. The cost of domestic piped natural gas (PNG) will be revised to Rs31.79 per scm and Rs37.39 per scm.
The company cited an increase in tariff at its Trombay RCF and Uran-Thal-Usar pipelines for the increase in the base prices of gas.
The hike in the CNG price is expected to have a slight impact on the running costs of autos and taxis, raising it by 1 paise/km and 2 paise/km, respectively.
"Even after the above revision, MGL’s CNG still continues to be a very attractive proposition and offers savings of about 51 per cent and 22 per cent as compared to petrol and diesel respectively at current price levels in Mumbai," the company said in a statement.