CNG price cut: Compressed Natural Gas (CNG) and LPG prices in the national capital were cut by up to Rs 6 today (April 8) – the first cut in two years – after the government changed the pricing formula for natural gas.
CNG in the National Capital Region of Delhi will now cost Rs 73.59 per kg, down from Rs 79.56, Indraprastha Gas Ltd (IGL) – the firm that retails CNG and piped cooking gas in the city – said in a Twitter post. .
Along with this, rates of domestic cooking gas, called piped natural gas (PNG), have been reduced from Rs 53.59 per cubic meter to Rs 48.59 per standard cubic meter in Delhi, according to IGL.
The reduction follows an increase of more than 80 percent in prices over two years. CNG prices were increased on 15 occasions between April 2021 and December 2022. Since April 2021 till now, the price of CNG has increased by Rs 36.
According to the data, Rs 16 per kg or 83 per cent.
CNG prices were last increased on December 17, 2022.
PNG rates,
Similarly, between August 7, 2021 and October 8, 2022, PNG rates have increased by 10 times. There has been an increase of Rs 24.09 per scm i.e. 81 per cent in all prices. Rates went up as energy prices rose internationally due to geopolitical conflicts. The prices would have gone up further but for a change in the price of natural gas – the input raw material that is converted into CNG and PNG – by the government on Thursday evening.
So instead of using rates at the four international gas centres, locally produced fuel is now benchmarked to the cost of imported crude, subject to a limit of US$6.5 per million British thermal unit.
The oil ministry rolled out the pricing formula from Saturday with the gas price announcement of $7.92 per mmBtu for the rest of the month. But due to the cap, gas will cost only US$6.5 for city gas retailers like IGL. This is USD 6.5 per mmBtu cap price as compared to USD 8.57 prevailing rates earlier.
In a Twitter post, IGL said the retail prices charged by it for CNG and PNG in the national capital are “the lowest in the country.”
The revised retail price of PNG in Delhi will be Rs 48.59 per SCM with effect from 9 April 2023. “The revised retail price of PNG in Noida, Greater Noida and Ghaziabad will be Rs 48.46 per SCM with effect from 9 April 2023.” The revised retail price of PNG in Gurugram, Rewari, Karnal and Kaithal will be Rs 47.40 per sc.
Similarly, the revised retail price of CNG will be Rs 73.59 per kg in Delhi, Rs 77.20 in Noida, Greater Noida and Ghaziabad and Rs 82.62 per kg in Gurugram.
(with inputs from agencies)
Read also: Govt caps CNG, piped cooking gas rates, changes pricing formula