CNG prices revised in Delhi, NCR
7 July 2012 3:09 AM GMT
Indraprastha Gas Limited [IGL], a joint venture of GAIL [India] Ltd, BPCL and Government of NCT of Delhi, on Friday, announced revision in the selling price of Compressed Natural Gas [CNG] in NCT of Delhi, Noida, Greater Noida and Ghaziabad.
The revision in price would result in increase of Rs 2.90 per kg in the consumer price of CNG in Delhi and Rs 3.30 per kg in the consumer price of CNG in Noida, Greater Noida and Ghaziabad. The new consumer price of Rs 38.35 per kg in Delhi and Rs 43.10 per kg in Noida, Greater Noida and Ghaziabad would be effective from midnight.
IGL is constrained to announce the increase in the price of CNG since the input cost of entire pool of natural gas has risen substantially since the last price revision due to appreciation of dollar vis-Ã -vis rupee upto 14 per cent and the increased dependence on imported Spot R-LNG. In addition, there has been an increase in cost due to a massive hike of over 23 per cent in electricity tariff and also in minimum wages announced by the government.
The base price of natural gas being procured by IGL from all its sources i.e. APM, Long term R-LNG as well as Spot R-LNG is dollar linked thereby making the entire input price totally dependent on price of dollar vis-Ã -vis rupee. Despite steep appreciation in the rate of dollar as compared to rupee since last price revision in March 2012, IGL has been able to sustain itself for four months without passing on any burden to the consumers.
The rapidly increasing CNG demand has also led to increase in the quantum of costly imported R-LNG being procured for supply as CNG. The allotted APM gas has already been fully utilized by IGL and there has been a complete stoppage of KG D-6 supplies to IGL since September 2011.
The price of Spot R-LNG is more than three times the price of domestic gas like APM and KG D-6.
However, this increase would have minor impact on the per km running cost of vehicles in Delhi. For autos, the increase would be 8 paisa per km, for taxi it would be14 paisa per km and in case of buses, the increase would be 83 paisa per km, which translates to less than two paisa per passenger-km.
The revision in price would result in increase of Rs 2.90 per kg in the consumer price of CNG in Delhi and Rs 3.30 per kg in the consumer price of CNG in Noida, Greater Noida and Ghaziabad. The new consumer price of Rs 38.35 per kg in Delhi and Rs 43.10 per kg in Noida, Greater Noida and Ghaziabad would be effective from midnight.
IGL is constrained to announce the increase in the price of CNG since the input cost of entire pool of natural gas has risen substantially since the last price revision due to appreciation of dollar vis-Ã -vis rupee upto 14 per cent and the increased dependence on imported Spot R-LNG. In addition, there has been an increase in cost due to a massive hike of over 23 per cent in electricity tariff and also in minimum wages announced by the government.
The base price of natural gas being procured by IGL from all its sources i.e. APM, Long term R-LNG as well as Spot R-LNG is dollar linked thereby making the entire input price totally dependent on price of dollar vis-Ã -vis rupee. Despite steep appreciation in the rate of dollar as compared to rupee since last price revision in March 2012, IGL has been able to sustain itself for four months without passing on any burden to the consumers.
The rapidly increasing CNG demand has also led to increase in the quantum of costly imported R-LNG being procured for supply as CNG. The allotted APM gas has already been fully utilized by IGL and there has been a complete stoppage of KG D-6 supplies to IGL since September 2011.
The price of Spot R-LNG is more than three times the price of domestic gas like APM and KG D-6.
However, this increase would have minor impact on the per km running cost of vehicles in Delhi. For autos, the increase would be 8 paisa per km, for taxi it would be14 paisa per km and in case of buses, the increase would be 83 paisa per km, which translates to less than two paisa per passenger-km.
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