The company had last increased the price in September. The 4% revision in CNG price would result in an increase of R1.55 per kg in the consumer price of CNG in Delhi and R1.80 per kg in the consumer price of CNG in Noida, Greater Noida and Ghaziabad, the company statement said.
Earlier, the price was increased by R1.75 per kg on January and by R1.90 per kg in March. The hike had been necessitated because of fall in the value of rupee and rise in cost of imported gas as supplies from Reliance Industries KG-D6 block dropped sharply. Imported fuel costs at least three times more than $4.20 per million British thermal unit rate fixed for domestic gas.
City gas distributors like IGL are not getting any supplies from KG-D6 since September last year, after a 40% output drop forced the government to cut supplies to non-priority sectors so that requirement of power and fertiliser plants can be fully met.