CNG price hiked by Rs 2 per kg; rates up by Rs 19.60/kg in two months

The price of compressed natural gas in the national capital on Saturday rose by 2 rupees per kilogram, the thirteenth price increase in just over two months.

CNG in the National Capital Territory of Delhi now costs 75.61 rupees per kilogram, up from 73.61 rupees per kilogram, according to information published on the website of Indraprastha Gas Ltd (IGL) – the company that sells CNG and piped cooking gas in the country. the capital and neighboring cities.

This is the 13th increase in price since March 7.

Altogether, the price of CNG increased by Rs 19.60 per kg during this period. Last year, prices rose by 32.21 rupees per kilogram, or 60 percent, according to data compiled by PTI.

However, the gas rates through pipes to home kitchens, which is called natural gas through pipes (PNG), remain unchanged at 45.86 rupees per cubic meter.

City gas distributors have been raising prices periodically since October last year, when domestic and international gas prices began to rise as economies around the world recovered from the slowdown caused by the pandemic.

Prices are likely to remain elevated in the near future due to higher international prices for natural gas, said Sanjay Kumar, managing director of IGL.

CNG prices rose by Rs 8.74 per kg in the last three months of 2021, and as of January there has been a steady increase of around 50 baisas per kg almost every week.

Rates rose after the government more than doubled the price of domestically produced natural gas to $6.1 per million British thermal units as of April 1. Since locally produced gas is not sufficient to meet the demand for city gas, imported fuel (LNG) is used. The cost of LNG in the spot or current market is US$18-20 per MMBtu.

Natural gas when compressed turns into CNG for use as a fuel in automobiles. The same gas is piped to home kitchens and industries for cooking and other purposes.

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Mahanagar Gas Limited (MGL) has priced Compressed Natural Gas (CNG) at Rs 76 per kilogram in Mumbai.

Prices vary from city to city depending on the occurrence of local taxes such as VAT.

The increase in CNG prices follows a Rs 10 per liter hike in petrol and diesel prices in 16 days and a Rs 103.50 per cylinder increase in LPG cooking gas prices.

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