Indraprastha Gas Limited (IGL) on Friday said it has revised price of compressed natural gas (CNG) by Rs 1.55-Rs 1.80 for every KG in Delhi, Noida, Greater Noida and Ghaziabad. The four per cent increase in price is due to increased input gas price and related taxes. This would be effective Friday midnight.
The revision in CNG price would result in increase of Rs 1.55 per kg in the consumer price of CNG in Delhi and Rs 1.80 per kg in the consumer price in Noida, Greater Noida and Ghaziabad, IGL said in a statement.
The new consumer price in Delhi would be Rs 39.90 per kg and Rs 45.10 per kg in Noida, Greater Noida & Ghaziabad.
“We are constrained to revise the retail price of CNG primarily due to increase in the overall input cost of natural gas being sourced by us as a result of increased dependence as well as recent increase in the prices of imported R-LNG,” IGL said in its statement.
The proportion of costly imported R-LNG vis-à-vis domestic gas in the overall pool of natural gas being procured for supply as CNG is constantly on the rise and has already crossed 25 per cent, it said.
Since allotted APM gas has already been fully utilised by IGL and there has been a complete stoppage of KG D6 supplies to IGL since 2011, any additional CNG demand has to be met through costly R-LNG, which is available in the market at well over three time the cost of domestic gas supplies under APM.
The prices of R-LNG have been on the rise recently and therefore, new R-LNG quantities are available in the market at much higher prices than the existing ones.