The starting of the new financial year took the owners of CNG-run vehicles by surprise with Indraprastha Gas Limited increasing the gas prices by 30 paisa for a kilogram in the Capital.
The new prices have come into effect from Saturday midnight.
According to IGL officials, the company that distributes Compressed Natural Gas in Delhi, Ghaziabad, Noida and Greater Noida, the CNG will now cost Rs 29.30 in Delhi and Rs 32.85 per kilogram in Noida, Greater Noida and Ghaziabad, where the prices have gone up by 35 paise.
There are more than four lakh CNG-run vehicles — both commercial and private — in Delhi and the national capital region. Delhi has world’s largest CNG-propelled public transport system. Though the CNG price hike will affect the running cost of buses, auto-rickshaws and taxis, Delhi transport minister Arvinder Singh said bus and auto fare will not be increased.
According to IGL managing director Rajesh Vedvyas, minor adjustment in prices, which amounts to just about 1%, has been done because of increase in operating expenses as a result of revision of minimum wages by the government.
“This will have only marginal impact on the running cost of CNG vehicles,” Vedvyas said.
“Despite the increase, CNG would still offer nearly 64% savings towards the running cost when compared to petrol-driven vehicles at the current level of prices. When compared to diesel-driven vehicles, again the economics is in favour of CNG as the revised price would be over 22%, he added.
This is the second increase in CNG prices in the past three months. The IGL had increased the prices by R2/kg on January 2 this year. However, this is the eighth increase in the prices of so-called ‘greener and cheaper fuel’ in the past 21 months.