Economy

IGL cuts piped natural gas price by ₹1 per scm

Our Bureau New Delhi | Updated on October 04, 2020 Published on October 04, 2020

Indraprastha Gas Limited (IGL) has cut the price of its piped natural gas by around ₹1 per standard cu m (scm).

In Delhi, the price has been cut by ₹1.05 per scm from Saturday/Sunday midnight. The applicable price for PNG in Delhi would be ₹27.50 per SCM, IGL said in a notification to consumers. The domestic PNG price has been reduced by ₹1 per scm in Delhi’s adjoining Gautam Budh Nagar. The price there would be ₹27.45 per scm, IGL said.

IGL is also expected to lower the price of compressed natural gas (CNG) in tandem with the PNG price cut. PNG is used for cooking while CNG is used as a transport fuel.

The lowering of PNG price follows the price of domestically produced natural gas being cut to $1.79 per million British thermal units (mBtu) for the October 2020-March 2021 period. The price for the April- September 2020 period was $2.39 per mBtu. This is the third consecutive cut in price of domestically produced natural gas in the country.

It was expected that city gas distribution companies like IGL and Mahanagar Gas Limited (MGL) would pas on the benefits of the price cut. Analysts estimated a cut of ₹1- 3 per scm to be in tandem with the lowering of domestic natural gas price.

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Published on October 04, 2020
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