Piped gas gets dearer now
After petrol, diesel, CNG and LPG, it is the turn of Piped Natural Gas (PNG) to hit the budget.
Nearly 2 lakh households in Delhi and the NCR used PNG — the most economical fuel compared to alternatives such as LPG.
The new consumer price of PNG in Delhi will be Rs 16.85 per Standard Cubic Metre (SCM), up from Rs 15.92 per SCM. The new retail price of the domestic PNG will be effective from July 1.
The price will be effective up to consumption of 90 SCM in four months and for consumption beyond that, the applicable rate in Delhi will be Rs 21.12 per SCM.
The applicable price of PNG in Noida, Greater Noida and Ghaziabad will be Rs 18.32 per SCM up to consumption of 90 SCM in four months and Rs 21.93 per SCM beyond consumption of 90 SCM in four months.
The price variation is due to differential tax structure in Uttar Pradesh.
There are chances of further increase in the domestic PNG prices due to heavy investments being made on the PNG expansion project undertaken by Indraprastha Gas Limited (IGL), which supplies domestic PNG in Delhi and NCR, the company said.
The company plans to add over 70,000 new PNG connections in the current financial year.
IGL said the hike is due to increase in the price of APM natural gas announced by the Centre earlier this month.
“We are constrained to increase the retail selling price of PNG due to the increase in the input price of APM gas procured by IGL along with its corresponding taxes and duties,” said Rajesh Vedvyas, Managing Director, IGL.