CNG prices hiked in Delhi and neighbourhood

March 5th, 2012 - 8:06 pm ICT by IANS  

New Delhi, March 5 (IANS) Compressed natural gas (CNG) in Delhi will cost Rs.1.70 more per kg from midnight Monday.

In the Noida, Greater Noida and Ghaziabad neighbourhoods, the price of the commodity has been hiked by Rs.1.90 per kg effective a day later from midnight March 6.

The new consumer price will be Rs.35.45 a kg in Delhi and Rs.39.80 a kg in Noida, Greater Noida and Ghaziabad.

The distributor Indraprastha Gas Ltd (IGL) said it raised the price factoring in the rise in input cost.

“We are constrained to revise the retail price of CNG due to increase in the overall input cost of natural gas being sourced by us as a result of increased dependence on imported Spot R-LNG,” M. Ravindran, IGL managing director, said.

According to Ravindran, the proportion of imported R-LNG compared to domestic gas in the overall pool of natural gas being procured for supply as CNG has risen around 25 percent and is constantly on the rise as any additional CNG demand has to be met through Spot R-LNG.

Ravindran also said that with the demand for CNG increasing rapidly in the region, IGL is left with no other alternative but to source costly Spot R-LNG at well over three times the cost of domestic gas like APM (Administered Price Mechanism) and KG D-6 to maintain the supplies to its customers.

As R-LNG prices in the Asian region are linked directly with crude prices, the recent sharp increase in Brent crude prices has had its impact on the gas prices too.

IGL said the price hike would have minor effect in the per km running cost of vehicles with that for autos going up by 5 paise, for taxis by 9 paise and buses 48 paise.

Related Stories

Tags: , , , , , , , , , , , , , , , , , , ,

Posted in Business |

Subscribe