The price of compressed natural gas (CNG), a cleaner transport fuel, was revised upwards by 50 paise per kg from Saturday by the sole distributing agency, Indraprastha Gas Limited.
The price increase has been effected in Delhi, Noida, Greater Noida and Ghaziabad.
The new prices would be Rs. 21.70 per kg in Delhi, Rs 23.50 per kg in Noida and Greater Noida and Rs 25.50 per kg in Ghaziabad.
The rise in CNG prices comes weeks after oil marketing companies increased prices of petrol and diesel by Rs 2.71 a litre and Rs 2.55 a litre respectively.
"We are constrained to increase the price of CNG marginally as there has been an increase in our various operational expenses, mainly due to increase in minimum wages and other expenses for operations which are aimed at providing services to our customers," said Rajesh Vedvyas, managing director of IGL.
Delhi alone has about 250,000 vehicles, including 140,000 cars using CNG as an alternative fuel. The capital's public transport system, as also taxis and autorickshaws, run on CNG.
Vedvyas said the price hike amounted to a marginal increase of 2 per cent and CNG would still offer 67 per cent savings towards the running cost when compared to petrol driven vehicles at the current level of prices.
"When compared to diesel fuelled vehicles the economics in favour of CNG at revised price would be 39 per cent," he added.
Indraprastha Gas Limited (IGL) is a joint venture between, GAIL (India) Ltd., BPCL and the Government of National Capital Territory of Delhi.