13th increase in the CNG rates in just over two months!
On Saturday, The price of compressed natural gas (CNG) in Delhi was hiked by Rs. 2 per kg, the 13th increase in rates in just over two months.
CNG in the national capital territory of Delhi now costs ? 75.61 per kg, up from ? 73.61 per kg, according to the information posted on the website of Indraprastha Gas Ltd (IGL) - the firm which retails CNG and piped cooking gas in the national capital and adjoining cities.
This is the 13th increase in price since March 7.
In all, the CNG price has risen by ? 19.60 per kg during this period. In the last one year, prices have increased by ? 32.21 per kg or 60 per cent, according to data compiled by PTI.
However, the rates of gas piped to household kitchens, called piped natural gas (PNG), remain unchanged at ? 45.86 per scm.
City gas distributors have been periodically raising prices since October last year, when domestic as well as international gas prices started to climb as economies around the world recovered from the pandemic-induced slowdown.
IGL Managing Director Sanjay Kumar said the prices are likely to remain elevated in the near future due to high international prices of natural gas.
CNG prices rose by ? 8.74 per kg in the last three months of 2021, and from January there was a steady increase of about 50 paise a kg almost every week.
The rates have gone up after the government more than doubled the price of natural gas produced locally to $6.1 per million British thermal units from April with domestically produced gas not sufficient to meet city gas demand, imported fuel (LNG) is being used. LNG in the spot or current market costs $18-20 per mmBtu.
Natural gas when compressed becomes CNG for use as fuel in automobiles. The same gas is piped to household kitchens and industries for cooking and other purposes.
Mahanagar Gas Limited (MGL) has priced CNG at ? 76 per kg in Mumbai.
Prices vary from city to city depending on the incidence of local taxes such as value added tax.
The increase in CNG prices follows a ? 10 per litre hike in petrol and diesel prices in 16 days and a ? 103.50 per cylinder increase in the cooking gas LPG rates.
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