Ranchi, India - Aug. 23, 2019:CNG filling station after its launch in state capital station at Doranda in Ranchi, India, on Friday, August 23, 2019. (Photo by Diwakar Prasad/ Hindustan Times)(Diwakar Prasad/ HT File Photo)
Ranchi, India - Aug. 23, 2019:CNG filling station after its launch in state capital station at Doranda in Ranchi, India, on Friday, August 23, 2019. (Photo by Diwakar Prasad/ Hindustan Times)(Diwakar Prasad/ HT File Photo)

CNG price hike of 50p/kg to have no impact on autorickshaw drivers

The hike in CNG price was necessary to offset the impact on its input costs as a result of the recent appreciation of the US dollar vis-à-vis the Indian rupee, said an IGL official familiar with the matter.
Hindustan Times, Gurugram | By HT Correspondent, Gurugram
PUBLISHED ON SEP 02, 2019 06:04 AM IST

The price of Compressed Natural Gas (CNG) has been hiked by 50 paise per kilogram in Gurugram, Rewari, Karnal, Delhi, Noida, Greater Noida and Ghaziabad.

Indraprastha Gas Limited (IGL), which supplies CNG in the Delhi-NCR region, said that the new rate will be effective from Sunday 6am onwards.

The hike was necessary to offset the impact on its input costs as a result of the recent appreciation of the US dollar vis-à-vis the Indian rupee, said an IGL official familiar with the matter.

The price of CNG being supplied by IGL in Gurugram and Rewari would be 58.95 per kg, while in Karnal it would be 55.95 per kg. The consumer price would be 47.10 per kg in Delhi and 53.50 per kg in Noida, Greater Noida and Ghaziabad.

Explaining the reasons behind the revision of CNG prices, an official spokesperson of IGL said that this marginal revision was necessitated due to the recent appreciation of the US dollar vis-à-vis the Indian rupee and the increase in operational costs since the last price revision.

The base price of natural gas being procured by the IGL from all sources is dollar-linked, thereby making the entire input price dependent on the value
of the dollar.

However, this increase is expected to have a marginal impact on the running costs of vehicles per km. For auto-rickshaws, for instance, the increase would translate to just over one paisa per km, while for taxis, it would translate into two paise per km, IGL official said.

With the price revision, CNG would still offer over 52% savings towards the running costs when compared to petrol-driven vehicles at the current level of prices. On the other hand, when compared to diesel-driven vehicles, the economics in favour of CNG at the revised price would be over 27%.

A large number of auto-rickshaws and cabs in Gurugram have switched to CNG in the last two years.

SHARE THIS ARTICLE ON
Close
SHARE
Story Saved
OPEN APP