CNG price hike: CNG price in the national capital and adjoining cities was hiked by Rs 1 per kg today (June 22) on the back of a reduction in domestic gas supplies. CNG price was hiked from Rs 74.09 to Rs 75.09 per kg, while in Noida, Greater Noida and Ghaziabad the rate went up from Rs 78.70 to Rs 79.70 per kg, according to information posted by IGL on its website.
Other city gas suppliers have not changed the prices yet. There, however, was no change in piped cooking gas prices. IGL did not give reasons for the increase but sources said the hike was warranted because the firm now has to buy more imported gas following a drop in domestic supplies.
Natural gas pumped out of the ground and seabed is turned into CNG for running automobiles. But supplies from ONGC's domestic fields have not kept pace with the CNG demand. Gas from ONGC fields make up for 66-67 per cent of CNG demand of IGL. The rest has to be imported. Domestic gas supplies are prioritized for piped cooking gas purposes and so there is no hike in that segment, sources said.
However, there has been no change in CNG prices in Gurugram, as it is serviced by a different company. Other city gas retailers have so far not announced any change in prices. In Ajmer, Pali, and Rajsamand in Rajasthan, CNG prices have been increased to Rs 82.94 per kg from Rs 81.94 per kg by IGL. CNG prices have also increased in Rewari, Haryana, as well as Meerut, Muzaffarnagar, and Shamli in Uttar Pradesh- towns serviced by IGL.
Earlier this month, the Indian Biogas Association (IBA) demanded a fixed rate of Rs 90 per kg for procurement of biogas by oil and gas marketing companies, from the government, citing environmental benefits and to boost the sector.
The IBA will soon put up the suggestion about fixing the procurement price of the biogas, along with other recommendations, for boosting the sector before the newly appointed Union Minister of New and Renewable Energy Minister Pralhad Joshi.
While the retail selling price of compressed biogas (CBG) is aligned with CNG (compressed natural gas), the procurement price is unfortunately linked to the retail selling price (RSP) of CNG, IBA Chairman Gaurav Kedia told media.
Consequently, he said with CNG prices in New Delhi hovering at Rs 75-80 per kg, the procurement price of CBG by oil and gas marketing companies falls to Rs 59 per kg (excluding GST).
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