Regulator asks IGL to reduce gas pricesApril 10th, 2012 - 9:09 pm ICT by IANS
New Delhi, April 10 (IANS) Piped cooking gas for households and compressed natural gas (CNG) for vehicles is likely to become cheaper in the national capital with the regulator asking Indraprastha Gas Limited (IGL) to cut the network tariff and compression charge.
The Petroleum and Natural Gas Regulatory Board (PNGRB) has asked the firm to reduce its network tariff by 63 percent to Rs.38.58 per million British thermal units (mmBtu) as against Rs.104.05 per mmBtu. It has also cut compression charge for CNG by 59 percent to Rs.2.75 per kg from Rs.6.66 per kg.
The PNGRB has not only fixed the charges retroactively from April 1, 2008 but also ordered IGL to refund the difference to customers.
Following the order issued Monday, the stock price of the company tumbled 33.66 percent at Rs.229.80 Tuesday on likely hit to the margin of the firm. In intra-day trade, the share price crashed to 52-week low of Rs.170.
Meanwhile IGL has approached the Delhi High Court against the order.
M. Ravindran, managing director of IGL, said the firm had challenged the constitutionality and legality of the powers of the board to fix the tariff.
IGL had last hiked the prices of CNG gas in Delhi by Rs.1.70 a kg and by Rs.1.90 per kg in Noida, citing rise in input cost as the factor, in March.
The current consumer price of CNG is Rs.35.45 a kg in Delhi and Rs.39.80 a kg in Noida, Greater Noida and Ghaziabad.
- Have power to frame CNG tariff rules, regulator tells court (Lead) - May 22, 2012
- Court reserves order on CNG price cut - May 24, 2012
- No stay on regulator's order to cut gas prices in Delhi (Lead) - Apr 11, 2012
- Court quashes regulatory board's order on CNG - Jun 01, 2012
- CNG prices hiked in Delhi and neighbourhood - Mar 05, 2012
- IGL stock rallies 29 percent on high court order - Jun 01, 2012
- IGL raises gas prices by 0.20 paise in UP - Sep 08, 2012
- CNG price raised marginally - Jun 04, 2011
- CNG prices raised Rs.2.90 a kg in Delhi (Lead) - Jul 06, 2012
- CNG price to go up by up to Rs.2 per kg - Dec 30, 2011
- CNG to cost Rs.5.60 more a kg in Delhi from midnight - Jun 16, 2010
- CNG price raised by Rs.2.30 in national capital region - Sep 30, 2011
- CNG prices raised up to Rs.2 a kg in NCR (Lead) - Dec 30, 2011
- CNG costs Rs.5.60 more a kg from midnight in Delhi (Lead) - Jun 16, 2010
- Indraprastha Gas net profit rises 16.5 percent - Oct 19, 2011
Tags: april 1, cng, compressed natural gas, constitutionality, delhi high court, gas prices, ghaziabad, greater noida, households, IGL, managing director, New Delhi, petroleum, regulatory board, rs 1, rs 2, rs 6, share price, stock price, tariff