Get ready to pay more for your auto commute and the piped gas in your kitchen.
The cost of compressed natural gas (CNG) and piped natural gas (PNG) is set to go up quite steeply in Delhi, Mumbai and other cities including Pune, Indore, Ahmedabad, Lucknow, Vadodara and Vijaywada.
This is the fallout of the government’s decision on Wednesday to more than double administered price of natural gas produced by state-controlled ONGC and Oil India Ltd (OIL). This could also hurt power tariffs.
CNG — used by autos, taxis and buses — could go up by Rs 5 to 6 per kg and PNG by Rs 4 to 5 per unit. On account of varying state taxes and levies, CNG in Delhi costs Rs 21.90 per kg and Rs 24.65 in Mumbai.
PNG costs Rs 16.5 per unit in Delhi and Rs 13.7 in Mumbai. Indraprastha Gas Ltd (IGL) and Mahanagar Gas Ltd (MGL) — suppliers of CNG and PNG in Delhi and Mumbai — at present procure gas from state-run gas firms at $1.79 (Rs 80) per unit.
The cabinet on Wednesday cleared $4.20 (Rs 189) per unit as the new price of natural gas produced by ONGC and OIL.
While IGL in Delhi and NCR supplies CNG to over 350,000 vehicles, MGL in Mumbai provides gas to around 200,000 vehicles.
IGL has 180,000 PNG consumers while MGL provides PNG to more than 400,000 Mumbai homes.
IGL and MGL refused official comments and said the impact was still being worked out. “We are yet to receive the government’s official notification on increase in price of gas being produced by ONGC and OIL. The impact, whatever it is, will have to be passed on,” said IGL and MGL officials.