CNG, PNG prices slashed in Delhi

CNG, PNG prices slashed in Delhi

Prices of compressed natural gas (CNG) and piped natural gas (PNG) have significantly come down in Delhi, thanks to the oil ministry's decision to give gas distribution companies cheaper domestic gas to meet all their needs for CNG and PNG supplies in the national capital.

Price of CNG in the national capital has been slashed by Rs 14.90 per kg, while piped cooking gas' price has been slashed by Rs 5 per standard cubic meters (scm).

It is the first reduction in CNG rate in the national capital in almost six years. The last CNG price cut was made in March 2008, when price was cut by 30 paise after a cut in excise duty.

Consumers in Noida, Greater Noida and Ghaziabad will also enjoy declines of Rs 16.5 per kg to Rs 40.15 per kg in prices of CNG. It may be noted here that prices in different states differ due to differential tax structures.

Announcing the price cuts, IGL MD Narendra Kumar said, "Subsequent to the increase in our domestic gas allocation to meet the full requirement for CNG and domestic PNG by the government, IGL has decided to pass on the entire benefit to its esteemed consumers by reducing the consumer prices."

The decline in CNG prices will have a significant impact on per km running cost of vehicles. While autos' running cost will slip by 43 paise per km, for taxis, it will come down by 72 paise per km.

However, the price cut may be a temporary relief, as prices of domestic natural gas will almost be doubled to US$ 8-8.2 from 1st of April. The increase may translate into a CNG and PNG price rise of Rs 10.6 per kg and Rs 8/scm, respectively.

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