New Delhi, Jan 4 : Indraprastha Gas Limited (IGL) today announced a hike in the selling price of Compressed Natural Gas (CNG) in Delhi, Noida, Greater Noida and Ghaziabad due to increased input gas price and related taxes.
An IGL press release said, the 4 per cent revision in CNG price would result in increase of Rs 1.55 per kg in the consumer price of CNG in Delhi and Rs 1.80 per kg in the consumer price of CNG in Noida, Greater Noida and Ghaziabad.
The new consumer price of Rs. 39.90 per kg in Delhi and Rs 45.10 per kg in Noida, Greater Noida & Ghaziabad would be effective from 12:00 midnight of 4th /5th January 2013.
“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”, says the press release
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%.
Since allotted APM gas has already been fully utilized 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 (administered pricing mechanism).
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 - km, says the press release.
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