CNG, piped cooking gas prices lowered by IGL; First gas price reduction in 2 years for Delhi

Indraprastha Gas Limited (IGL) announced on April 8 that it has reduced the prices of compressed natural gas (CNG) and piped cooking gas by up to Rs 6 in Delhi. The new gas prices will come into effect from April 9, marking the first time in two years that gas prices have been lowered.

The revised rates were announced after the Indian government changed the pricing formula of natural gas earlier in the week. The pricing strategy for natural gas has been modified by the Indian government, where the locally produced fuel is now being benchmarked to the cost of imported crude oil, capped at $6.5 per million British thermal unit, instead of the four international gas hubs' rates. The new pricing formula took effect on April 8, with the oil ministry announcing a gas price of $7.92 per mmBtu for the remaining days of the month. However, the gas prices to city gas retailers such as IGL will remain within the cap, and customers can avail the benefit of reduced prices.

As per the announcement, CNG will be available in the national capital region for Rs 73.59 per kg, down from Rs 79.56. In a tweet, IGL said, "The revised retail price of CNG in Delhi would be Rs 73.59 per kg w.e.f. 6 am on 9th April 2023." The revised retail price of CNG in Noida, Greater Noida, and Ghaziabad will be Rs 77.20 per kg, and Rs 82.62 per kg in Gurugram.

The price of gas piped to household kitchens or PNG has also been reduced to Rs 48.59 per standard cubic metre from Rs 53.59 per scm. This follows an over 80 per cent increase in prices over the past two years, providing much-needed relief to consumers.