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CNG price in Delhi hiked by 80 paise following record natural gas prices

CNG price in Delhi hiked by 80 paise following record natural gas prices

Meanwhile, for Ghaziabad and Noida, the domestic PNG price has been increased by Rs 5.85 to Rs 41.71/SCM.

CNG and piped cooking gas supplies in cities come from the gas produced by ONGC. CNG and piped cooking gas supplies in cities come from the gas produced by ONGC.

Compressed natural gas (CNG) prices in the national capital have been increased by 80 paise per kg a day after government more than doubled the price of natural gas. The new price will be for six months beginning today.

CNG price in the National Capital Territory (NCT) of Delhi has been increased to Rs 60.81 per kg from Rs 60.01, according to information posted on the website of Indraprastha Gas Ltd (IGL) -- the firm which retails CNG and piped cooking gas in the national capital.

This is the sixth increase in CNG prices in the last month. In all, rates have gone up by about Rs 4 per kg.
In Noida, Greater Noida and Ghaziabad, CNG will cost Rs 63.38 per kg, while in Gurugram the price is Rs 69.17 per kg.

Prices vary from city to city depending on the incidence of local taxes such as VAT.

Meanwhile, the domestic PNG price has been increased by Rs 5 per Standard Cubic Metre (SCM) with effect from April 1, 2022, partially cover the hike in input gas cost, the company said. The applicable price in Delhi would be Rs 41.61/SCM (including VAT).

For Ghaziabad and Noida, the domestic PNG price has been increased by Rs 5.85 to Rs 41.71/SCM.

The increase comes on the back of a surge in gas prices globally.

A record 137-day hiatus in petrol and diesel price revision ended on March 22. On the same day, the price of a 14.2-kg LPG cylinder was increased to Rs 949.50 in the national capital. In some places, the LPG price has touched Rs 1,000.

The government had on Thursday increased price of natural gas that is used to produce electricity, make fertilisers, turned into CNG and piped to household kitchens for cooking, on the back of a spike in global energy prices.

The price of gas produced from old regulated fields, such as the nation's largest gas field of Bassein of ONGC, will rise to a record high of $6.10 per million British thermal unit (mmBtu) from the current $2.90 per mmBtu, according to the oil ministry's Petroleum Planning and Analysis Cell (PPAC).

Petrol and diesel prices have been raised nine times in the last 10 days, totalling Rs 6.4 per litre while cooking gas LPG rates too have gone up by Rs 50 per cylinder. The latest gas price hike will further fuel inflation.

The rate applicable to newer and difficult fields such as ones of Reliance Industries Ltd in deepsea KG-D6 block, will get $9.92 per mmBtu for April-September as compared to current $6.13 per mmBtu, the PPAC notification said.

These are the highest prices ever paid to Indian gas producers.

The government sets the price of gas every six months -- on April 1 and October 1 -- each year based on rates prevalent in gas surplus nations such as the US, Canada and Russia.

The increase in gas price is likely to result in a 10-15 per cent rise in CNG and piped cooking gas rates in cities such as Delhi and Mumbai, industry sources had earlier told PTI.

CNG and piped cooking gas supplies in cities come from the gas produced by ONGC.

The price hike will also lead to a rise in the cost of generating electricity but consumers may not feel any major pinch as the share of power produced from gas is very low.

Similarly, the cost of producing fertiliser will also go up but as the government subsidises the crop nutrient, an increase in rates is unlikely.

This is the second straight hike in prices and betters $5.05 paid to ONGC and Oil India Ltd for old fields between November 2014 and March 2015 and $9.32 to newer fields in April-September 2019.

(With PTI inputs)

Published on: Apr 01, 2022, 6:28 PM IST
Posted by: Aparna Banerjea, Apr 01, 2022, 6:25 PM IST