Indraprastha Gas Limited (IGL) today announced a 4 per cent hike on compressed natural gas (CNG) in Delhi, Noida, Greater Noida and Ghaziabad. The reason attributed to the same is increased input gas price and related taxes.
The four per cent revision in the CNG price would result in an increase of Rs 1.55 per kg of CNG in Delhi and Rs 1.80 per kg in Noida, Greater Noida and Ghaziabad.
The new price of Rs. 39.90 per kg in Delhi and Rs 45.10 per kg in Noida, Greater Noida & Ghaziabad would be effective from midnight.
Explaining the reasons leading to the revision in the price of CNG, a spokesperson of IGL said, “We are constrained to revise the retail price of CNG primarily due to increase in the overall input cost of natural gas being sourced by us as a result of increased dependence as well as recent increase in the prices of imported R-LNG (re-gasified LNG)”.
The proportion of costly imported R-LNG vis-à-vis domestic gas in the overall pool of natural gas being procured for supply as CNG is constantly on the rise and has already crossed 25 per cent.
Since allotted APM (administered price mechanism) gas has already been fully utilised by IGL and there has been a complete stoppage of KG D-6 supplies to IGL since 2011, any additional CNG demand has to be met through costly R-LNG, which is available in the market at well over three time the cost of domestic gas supplies under APM.
The prices of R-LNG have been on the rise recently and therefore, new R-LNG quantities are available in the market at much higher prices than the existing ones.
This increase would have minor impact on the per km running cost of vehicles. For autos, the increase would be 4 paisa per km, for taxi it would be 7 paisa per km and in case of buses, the increase would be 45 paisa per km, which translates to less than one paisa per passenger per km.