Price hike: CNG to cost dearer by 50 paisa/kg from today

Just three days after petrol prices registered a hike in Delhi, CNG too became costlier by 50 paise per kilogram. HT reports.

Just three days after petrol prices registered a hike in Delhi, CNG too became costlier by 50 paise per kilogram.

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According to an Indraprastha Gas Limited (IGL) official, compressed natural gas (CNG) would cost R28.50/kg in Delhi from the intervening night of Saturday and Sunday.

With 55 paise per kilo increase in the NCR, CNG would cost R33.40/kg in Ghaziabad, Noida and Greater Noida.

CNG prices were last revised in April 2011. There are more than four lakh CNG-run vehicles — both commercial and private — in Delhi and National Capital region. Delhi has world’s largest CNG-propelled public transport system.

IGL managing director Rajesh Vedvyas said the rates have been hiked because of increase in cost of input (natural gas). IGL officials said there is increase in the average cost of gas in the current quarter. Besides government-controlled gas, IGL needs to source much higher priced gas from private firms to meet the increase in demand, which has contributed to higher cost of sourcing the gas.

He added that this increase would have marginal impact on the running cost of CNG vehicles.

“It (the hike) would have marginal impact on the running cost of CNG vehicles. Despite the increase, CNG would still offer 66% savings towards the running cost when compared to petrol driven vehicles at the current level of prices. When compared to diesel driven vehicles, the economics in favour of CNG at revised price would be 21 per cent,” Vedvyas said.