After diesel, petrol, CNG rates hiked | india | Hindustan Times
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After diesel, petrol, CNG rates hiked

After diesel and petrol, it is now the turn of Compressed Natural Gas (CNG) to get costlier, reports Atul Mathur.

india Updated: Mar 20, 2010 12:33 IST
Atul Mathur

After diesel and petrol, it is now the turn of Compressed Natural Gas (CNG) to get costlier.

A fortnight after the diesel and petrol prices were hiked in the Union Budget, Indraprastha Gas Limited (IGL), the agency distributing CNG in the Capital, increased the gas prices by 50 paise per kilogram on Friday.

From Friday midnight, CNG, a greener and cleaner auto fuel, is available for Rs 21.70 per kg in Delhi.

This is third time in less than a year that IGL has increased the CNG prices in Delhi. In June 2009, IGL increased the CNG price by Rs 2.10 due to increase in input cost and operational expenses and hiked it by 20 paise in November 2009.

Confirming the hike, an IGL official said the increase was inevitable due to increase in operational expenses.

More than 2.50 lakh vehicles, including 1.40 lakh private cars, in Delhi run on CNG. Delhi has the world’s largest public transport system running on CNG. More than 11,000 buses, 80,000 autos and 7,500 taxis run on CNG in Delhi.

Initially considered as fuel for public transport, CNG gained popularity among car-owners over the past three years. The growth of CNG-run private cars is estimated at about 250 per cent annually. People find it a cost effective fuel to run their vehicles on.

According to IGL, a CNG-run car saves almost 70 per cent on fuel cost in comparison to a petrol-run car and 63 per cent in comparison to LPG-run cars.