CNG price hiked by Rs 1.11/KG, PNG by 33 paise/ unit in Delhi
The price of CNG in Delhi was on Tuesday hiked by Rs 1.11 per kg and that of piped cooking gas to households by 33 paise per unit (scm) to account for new tax rates under the GST.
Indraprastha Gas Ltd announced the revision in the selling prices of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in NCT of Delhi, Noida, Greater Noida and Ghaziabad "to offset the overall impact on its costs after transition to GST regime," the company said in a statement.
The revision would result in an increase of Rs 1.11 per kg in the consumer price of CNG in Delhi and Rs 1.27 per kg in the same in Noida, Greater Noida and Ghaziabad.
The new consumer price of Rs 38.76 per kg in Delhi and Rs 44.42 per kg in Noida, Greater Noida & Ghaziabad would be effective from midnight tonight, it said.
A discount of Rs 1.50 per kg on CNG filling between 12.30 am and 5.30 am at select outlets would continue to be offered.
For households, the company revised the PNG price from Rs 24.86 per standard cubic meter (scm) to Rs 25.19 per scm in Delhi.
Due to differential tax structure in Uttar Pradesh, the applicable price of domestic PNG to households in Noida, Greater Noida and Ghaziabad would be Rs 26.73 per scm, an increase of 36 paise per scm from existing Rs 26.37 per scm.
"Under the previous indirect tax regime, IGL was entitled to avail input credits against excise duty and service tax paid on certain goods and services purchased.
"Since natural gas has been kept outside the ambit of GST, such input tax credits which were earlier available have been discontinued now leading to additional costs," the statement said.
In addition, the GST has become applicable on transportation charges of input natural gas being purchased post June 30, 2017, which was not the case earlier.
IGL said the increase would have a marginal impact on the per km running cost of vehicles. For autos, the increase would be 3 paise per km, for taxi it would be 5 paise per km and in case of buses, the increase would be 32 paise per km.
"With the revised price, CNG would still offer over 57 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 30 per cent," the statement added.