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For the fourth time this fiscal, Indraprastha Gas Ltd (IGL) has increased the selling price of compressed natural gas (CNG). The hike, effective Saturday, would result in increase of Rs 2 a kg in the consumer price of CNG in Delhi and Rs 2.30 a kg in Noida, Greater Noida and Ghaziabad.
The price in Delhi will be Rs 32.00 a kg and in Noida, Greater Noida and Ghaziabad Rs 35.90 a kg.
Despite the aforesaid prices increase, CNG would still offer over 65 per cent savings towards the running cost when compared to petrol driven vehicles at the current level of prices. When compared to diesel driven vehicles, the economics in favour of CNG at revised price would be over 22 per cent.
Petrol in Delhi is sold at Rs 66.84 a litre and diesel at Rs 41.29 a litre.
Mr Rajesh Vedvyas, Managing Director, IGL, said this increase would have minor impact on the per kilometre running cost of vehicles. For autos, the increase would be 6 paisa/km, for taxi it would be 10 paisa/ km and in case of buses, the increase would be 57 paisa/ km, which translates to around one paisa per passenger/km.
Explaining the compulsions leading to the revision in the price of CNG, he said, “We are constrained to hike the price due to major increase in the input cost of the entire pool of natural gas sourced by us as a result of recent steep appreciation of dollar vis-à-vis rupee.”
Besides, growing dependence on imported spot R-LNG and rise in operational expenses as a result of increased power tariff has compelled the company to do so, he added.
With the demand of CNG generally being highest during second half of the financial year and the availability of KG– D6 gas constantly declining, IGL is forced to depend increasingly on costly spot R-LNG, he said.
Mr Vedvyas said that in addition to full utilisation of the allotted gas under the administered price mechanism and available KG- D6 gas, IGL needs to source much higher priced long-term R-LNG as well as spot R-LNG to meet the increase in demand. This has contributed to higher cost of sourcing the gas.
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