CNG price in the national capital and adjoining towns was hiked on Friday by a steep Rs 2.90 per kg, the third increase in rates this year.
Compressed natural gas (CNG) in Delhi will cost Rs 38.35 per kg with effect from Friday midnight, Indraprastha Gas Ltd, the sole retailer of CNG and piped natural gas in the national capital, said in a press statement.
Earlier the price was increased by Rs 1.75 per kg on January 1 and by Rs 1.90 per kg later on March 6.
IGL, which hiked price of CNG sold to automobiles in Noida, Greater Noida and Ghaziabad by Rs 3.30 per kg to Rs 43.10 per kg, said the increase was necessitated because of fall in value of rupee and rise in cost of imported gas.
The hike had been necessitated because IGL is buying more of imported liquefied natural gas (LNG) after supplies from Reliance Industries' KG-D6 gas fields dried up. Imported fuel costs at least three times more than $4.20 per million British thermal unit rate fixed for domestic gas.
City gas distributors like IGL are not getting any supplies from KG-D6 since September last year, after a 40 per cent output drop forced the government to cut supplies to non-priority sectors so that requirement of power and fertiliser plants can be fully met.
"IGL is constrained to announce increase in the price of CNG since the input cost of entire pool of natural gas has risen substantially since the last price revision due to appreciation of dollar vis-a-vis rupee up to 14 per cent and the increased dependence on imported LNG," the company said.
In addition, there has been an increase in cost due to a massive hike of over 23 per cent in electricity tariff and also in minimum wages announced by the government.
IGL said this increase would have minor impact on the per km running cost of vehicles in Delhi.
"For autos, the increase would be 8 paisa per km, for taxi it would be 14 paisa per km and in case of buses, the increase would be 83 paisa per km, which translates to less than two paisa per passenger km," the statement added.