The price of Compressed Natural Gas (CNG) in Delhi was today hiked by RS 1.11 per kg. Also the price of Piped Natural Gas (PNG) was raised by 33 paise per unit (scm) to account for new tax rates under the Goods and Services Tax (GST).
Indraprastha Gas Ltd announced the revision in the selling prices of CNG and PNG today. According to the company, in Noida, Greater Noida and Ghaziabad, the CNG will cost Rs 1.27 per kg more whereas the PNG will cost 36 paise more.
The revised prices will be effective from midnight. “This revision in prices would result in an increase of Rs 1.11 per kg in the consumer price of CNG in Delhi and Rs 1.27 per kg in the consumer price of CNG in Noida, Greater Noida and Ghaziabad. The new consumer price of Rs. 38.76 per kg in Delhi and Rs 44.42 per kg in Noida, Greater Noida & Ghaziabad,” it said in a statement released here.
The statement added that IGL will continue to offer a discount of Rs 1.50 per kg in the selling prices of CNG for filling between 12.30 am to 5.30 am at select outlets. Thus, the consumer price of CNG would be Rs. 37.26 per kg in Delhi and Rs 42.92 per kg in Noida, Greater Noida & Ghaziabad during 12.30 am to 5.30 am at the select CNG stations across the region.
The new consumer price of PNG to the households in Delhi is also being revised by 33 paise per scm from Rs 24.86 per scm to Rs. 25.19 per scm. Due to differential tax structure in the state of Uttar Pradesh, the applicable price of domestic PNG to households in Noida, Greater Noida and Ghaziabad would be Rs 26.73 per scm, which has been increased by 36 paise per scm from existing Rs 26.37 per scm.
Under the previous indirect tax regime, IGL was entitled to avail input credits against excise duty and service tax paid on certain goods and services purchased. Since natural gas has been kept outside the ambit of GST, such input tax credits which were earlier available, have been discontinued now leading to additional costs. In addition, GST has become applicable on transportation charges of input natural gas being purchased post June 30, which was not the case earlier.
However, this increase would have a marginal impact on the per km running cost of vehicles. For autos, the increase would be 3 paisa per km, for taxi it would be 5 paisa per km and in case of buses, the increase would be 32 paise per km.
With the revised price, CNG would still offer over 57 per cent savings towards the running cost when compared to petrol driven vehicles at the current level of prices. When compared to diesel driven vehicles, the economics in favour of CNG at revised price would be nearly 30 per cent.
Latest Business News
