Natural gas distribution company Indraprastha Gas Limited on Monday increased the price of compressed natural gas by Rs 1.36 per kg in Delhi and by Rs 1.55 per kg in Noida, Greater Noida and Ghaziabad. The company cited rupee appreciation and changes in gas allocation policy as the reasons for the hike.
CNG will now cost Rs 41.97 per kg in Delhi and Rs 48.6 per kg in Noida, Greater Noida and Ghaziabad from Monday midnight. The company did not revise the price of piped cooking gas.
“There has been a steep appreciation of the dollar as compared to rupee since the last CNG price revision,” Indraprastha Gas Limited said in a statement, according to The Economic Times. “The base price of natural gas being procured by IGL from its sources is dollar-linked thereby making the entire input price totally dependent on the price of dollar vis-à-vis rupee.”
The company said the hike would have a marginal impact on the per kilometre running cost of vehicles. Despite the hike, CNG would still offer 40% to 60% savings towards the running cost when compared to vehicles running petrol or diesel, it added.
Indraprastha Gas also said it would continue to offer a discount of Rs 1.5 per kg at select outlets for those who would fill their vehicles with CNG between 12.30 am and 5.30 am.
Indraprastha Gas Limited is a joint venture of GAIL Limited, fuel retailer Bharat Petroleum Corp and the Delhi government. The company meets the fuel requirements of over 1.05 million vehicles running on CNG in the National Capital Region, The Economic Times reported.
The rise in CNG prices come amid rising prices of petrol and diesel in the country, with the prices going beyond Rs 86 in Mumbai on Monday. One litre of petrol in Delhi costs Rs 78.27, while a litre of diesel is priced at Rs 69.17. Petrol prices rose to Rs 80.91 a litre in Kolkata, Rs 86.08 in Mumbai and Rs 81.26 in Chennai. Oil companies increased the fuel prices for the 15th consecutive day on Monday even though international prices of crude oil have come down in the last three days.