The revision in the selling price of CNG is meant to offset the impact on the company’s input costs as a result of recent appreciation of dollar versus Rupee and the revision in proportions of domestic gas allocation, IGL said in a statement.
“The new consumer price of Rs 41.97 per kg in Delhi and Rs 48.60 per kg in Noida, Greater Noida and Ghaziabad would be effective from midnight of 28/29 May. IGL will continue to offer a discount of Rs 1.50 per kg in the selling prices of CNG for filling between 12.30 am to 5.30 am at select outlets,” the company said.
It added there has been a steep appreciation of the Dollar as compared to Rupee since the last CNG price revision. “The base price of natural gas being procured by IGL from its sources is Dollar-linked, thereby making the entire input price totally dependent on price of dollar versus Rupee. In addition, as per the revised domestic gas allocation for supply as CNG, the proportion of costlier Panna Mukta Tapti (PMT) gas has been increased, which has added to the input cost of gas,” IGL said.
The price increase would result in a 4 paisa per kilometer increase in the running cost of auto-rickshaws, 7 paisa per Km rise in the running cost of taxis and 40 paise per Km increase in the running cost of buses.
The company said despite the revised price, CNG would still offer over 60 per cent 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 nearly 40 per cent.
IGL is a joint venture of gas utility GAIL (India) Ltd, fuel retailer Bharat Petroleum Corp (BPCL) and the Delhi government. Its city gas distribution infrastructure is spread over Delhi, Noida, Greater Noida, Ghaziabad and Rewari and consists of over 11,000 Km of pipeline network. The company alone meets fuel requirements of over 1.05 million vehicles running on CNG in NCR through a network of 446 CNG stations. IGL also supplies PNG to nearly 900,000 households in Delhi and NCR towns.