CNG price hiked yet again in city | india | Hindustan Times
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CNG price hiked yet again in city

After the steep hike in petrol and diesel prices recently, now the compressed natural gas (CNG) has become costlier by 70 paise from Thursday in the city.

india Updated: Jul 22, 2011 00:52 IST
HT Correspondent

After the steep hike in petrol and diesel prices recently, now the compressed natural gas (CNG) has become costlier by 70 paise from Thursday in the city.

Now, one kg of CNG will cost Rs31, which is higher than the rate in neighbouring Delhi where CNG is being sold at Rs29.80 per kg. Gurgaon is the only city in Haryana where CNG is used. Transporters and vehicle owners have criticised the move.

Officials of the Haryana City Gas Distribution Limited (HCGDL), which is the sole distributor of CNG in the city, said they were forced to increase the price as transportation and other input costs have increased manifolds.

This is the seventh hike in the past two years in Gurgaon since July 2008 when it was launched at the rate of Rs27.50 per kg.

"The hike has been made due to the increasing gas and operation costs. The rate of Rs31 is inclusive of 5% VAT (value added tax)," said MS Khatkar, senior vice-president of HCGDL.

The CNG rate in Gurgaon is higher than that in Delhi due to 100% exemption of VAT in the national capital.

"There is a difference of Rs1.2 per kg between the two cities. If Delhi starts levying VAT on CNG, then the charge would have become Rs31.36 per kg," Khatkar added.

Meanwhile, motorists have criticised the hike in CNG prices. According to them, the company has been increasing the price in installments. "This hike will burn a hole in the pockets of transporters and vehicle owners. This is injustice," said Mohit Kumar, a driver. According to him, the rise in prices will reduce the profit margins of transporters.

The city currently supplies the gas to its consumers from five CNG filling stations located at sectors 22, 29, 44 and 53 and at a bus depot on Old Gurgaon Road.