CNG prices in the national capital were raised by Rs 2 per kg on Saturday, the 13th increase in less than two months. CNG now costs Rs 75.61 per kilogram in the national capital region of Delhi, up from Rs 73.61 per kilogram, according to statistics available on the website of Indraprastha Gas Ltd (IGL). Since March 7, prices have risen 13 times.
During this time, the price of CNG has increased by Rs 19.60 per kilogramme. According to data collated by PTI, prices have risen by Rs 32.21 per kilogramme, or 60%, in the last year. The costs for gas piped to residential kitchens, known as piped natural gas (PNG), remain constant at Rs 45.86 per scm.
Since October of last year, when domestic and international gas prices began to rise as economies throughout the world recovered from the pandemic-induced downturn, city gas distributors have raised prices on a regular basis. According to IGL Managing Director Sanjay Kumar, prices are likely to stay elevated in the foreseeable future due to high international natural gas costs.
CNG prices increased by Rs 8.74 per kg in the last three months of 2021, and there has been a constant increase of roughly 50 paise per kg practically every week since January.
The rates have risen after the government increased the price of locally generated natural gas by more than doubling it to USD 6.1 per million British thermal units on April 1. Because locally produced gas is insufficient to meet city gas demand, LNG is imported. The spot or current market price of LNG is USD 18-20 per mmBtu.
When natural gas is compressed, it generates CNG, which is used as a fuel in automobiles. The same gas is piped to homes and businesses for cooking and other uses. In Mumbai, Mahanagar Gas Limited (MGL) has set the price of compressed natural gas (CNG) at Rs 76 per kilogramme. Prices vary by city, based on the presence of local levies such as VAT.
The increase in CNG pricing comes after a Rs 10 per litre increase in petrol and diesel prices in the previous 16 days, as well as a Rs 103.50 per cylinder increase in cooking gas LPG rates.