CNG prices raised up to Rs.2 a kg in NCR (Lead)December 30th, 2011 - 6:00 pm ICT by IANS
New Delhi, Dec 30 (IANS) The price of compressed natural gas (CNG) will go up by Rs.1.75 a kg in Delhi and by Rs.2 in Noida, Greater Noida and Ghaziabad from midnight Friday following depreciation of the rupee against the dollar that has made the import of gas costlier.
Indraprastha Gas Ltd (IGL), sole distributor of CNG in the national capital region, said the gas will cost Rs.33.75 a kg in Delhi. In Ghaziabad, Noida and Greater Noida consumers will have to pay Rs.37.90 for a kg of CNG.
IGL Managing Director M. Ravindran said the company was compelled to increase the price because of the recent depreciation in the value of the rupee against the dollar.
“We have been forced to increase the retail price of CNG due to major increase in the input cost of entire pool of natural gas being sourced by us as a result of recent appreciation of dollar vis-à-vis rupee and the increased dependence on imported Spot R-LNG.”
IGL estimates that the increase for auto rickshaws would be 5 paise per km and for taxis 8 paise per km. In case of buses, the increase would be 50 paise per km, which translates to less than one paisa per passenger per km.
But observers say the hike in CNG price will make commuting costlier in the national capital region.
As per the government directive, all light commercial vehicles and most buses run on CNG in the Delhi region.
Prices of CNG have been hiked for the fifth time this year. The last hike was Oct 1, when it was increased by Rs.2 per kg in Delhi.
The Indian rupee has depreciated by almost 20 percent against the US dollar in the last five months. As a result of this, IGL has to pay more to import gas.
Ravindran said the base price of natural gas procured by IGL from all its sources - administered price mechanism (APM), KG-D6, long term R-LNG as well as Spot R-LNG was in US dollar. “Dollar has appreciated by 14 percent vis-à-vis rupee since the last price revision of CNG,” he said.
He said with the allotted APM gas having already been fully utilised and complete stoppage of KG-D6 supplies due to decrease in production, “IGL is left with no other alternative but to source costly Spot R-LNG to meet the ever increasing demand which has contributed to higher cost of sourcing the gas.”
IGL is a joint venture of GAIL, Bharat Petroleum and the Delhi government. It runs 232 CNG stations in the NCR and plans to open 30 new outlets by the end of the current financial year.
- CNG price to go up by up to Rs.2 per kg - Dec 30, 2011
- CNG price raised by Rs.2.30 in national capital region - Sep 30, 2011
- CNG prices hiked in Delhi and neighbourhood - Mar 05, 2012
- CNG gets dearer, to cost Rs.29 per kg - Jan 01, 2011
- IGL raises gas prices by 0.20 paise in UP - Sep 08, 2012
- CNG prices raised Rs.2.90 a kg in Delhi (Lead) - Jul 06, 2012
- Regulator asks IGL to reduce gas prices - Apr 10, 2012
- No stay on regulator's order to cut gas prices in Delhi (Lead) - Apr 11, 2012
- CNG price raised marginally - Jun 04, 2011
- Have power to frame CNG tariff rules, regulator tells court (Lead) - May 22, 2012
- IGL stock rallies 29 percent on high court order - Jun 01, 2012
- Court reserves order on CNG price cut - May 24, 2012
- CNG costs Rs.5.60 more a kg from midnight in Delhi (Lead) - Jun 16, 2010
- Piped cooking gas costlier in Delhi - Jul 01, 2010
- CNG gets dearer by 30 paisa in Delhi - Apr 02, 2011
Tags: base price, compressed natural gas, fifth time, gas ltd, ghaziabad, government directive, greater noida, indian rupee, light commercial vehicles, lng, ncr, paisa, paise, price mechanism, price of natural gas, price revision, ravindran, rickshaws, rs 2, sole distributor