CNG rate hiked by R1.75 a kg in Delhi

Written by Press Trust of India | New Delhi | Updated: Dec 31 2011, 09:29am hrs
The price of compressed natural gas (CNG) has been hiked by R 1.75 per kg in the national capital with effect from Friday midnight, mainly on account of rupee depreciation against the US dollar.

Indraprastha Gas, which sells CNG to automobiles and piped cooking gas to households in Delhi and neighbouring towns, said the new prices would be effective from the midnight.

The revision in prices would result in increase of R1.75 per kg in the consumer price of CNG in Delhi and R2 per kg in the consumer price of CNG in Noida, Greater Noida and Ghaziabad, the company said in a press statement here. The new consumer price in Delhi will be R33.75 per kg, while it will be R37.90 in Noida, Greater Noida and Ghaziabad. This is the fifth hike in CNG rates this year. IGL had last raised CNG prices in Delhi by R2 per kg to R32 a kg in October.

IGL managing director M Ravindran said: We have been forced to increase the retail price of CNG due to a major increase in the input cost of entire pool of natural gas being sourced by us as a result of recent appreciation of the dollar vis--vis the rupee and the increased dependence on imported LNG. The hike was necessitated because IGL bought expensive imported LNG to make up for the stoppage of supplies from Reliance Industries eastern offshore KG-D6 gasfield because of a fall in output.

In addition, rupee depreciation has made the raw material costlier. The rupee was hovering around R49.50 a US dollar at the time of the last price hike, while today, it is about R53 to a US dollar.