CNG prices raised again as IGL hikes rates for second time in two days

The latest Re 1 per kg hike by IGL took CNG prices to Rs 80.09 per kg in Delhi, even as the company said the rise only marginally offsets higher input costs

Indraprastha Gas Ltd (IGL), the country's largest City Gas Distribution company, raised the prices of compressed natural gas (CNG) across its network by ₹1 per kg on Sunday, the second such hike in two days. 

With the latest price change, which came into effect at 6 am on Sunday, the prices of the automobile fuel touched ₹80.09 per kg in Delhi, ₹88.70 per kg in Noida and Ghaziabad, ₹85.12 in Gurugram and ₹88.58 per kg in Muzaffarnagar. 

The increased prices are set to impact transportation budgets for key consumers, including private vehicle owners, cab drivers and public transport users. CNG competes with petrol and diesel as a transport fuel and CNG-based vehicles are generally preferred by consumers for being economical. 

 

"The retail selling price of CNG has been increased by ₹1 per Kg with effect from 6 am on May 17 in all geographical areas of IGL. The revision in retail prices of CNG has been effected only to marginally offset the impact of increase in input gas cost along with steep appreciation of US dollar," IGL said in a statement. 

It added that even after the revision, CNG would offer up to 45 per cent savings towards the running cost when compared to vehicles running on alternative fuel at the current level of prices. IGL had hiked CNG prices by ₹2 per kg on May 15, when the rate of the fuel went up to ₹79.09 per kg in Delhi. 

The ongoing West Asia crisis has choked energy supplies passing through the crucial Strait of Hormuz triggering an energy shock for several countries, including India, which are heavily dependent on imports to meet their domestic energy demand. Around 60 per cent of India's natural gas supplies transit through the Strait. 

The twin price hikes by IGL are the latest in a series of fuel price increase for consumers. Earlier, the country's three oil-marketing companies had raised prices of regular non-branded petrol and diesel by ₹3 per litre last week after a four-year pause. 

Even as petrol, diesel and CNG prices are seeing price hikes, domestic prices of piped natural gas remained unchanged since April 1. Domestic PNG is priced at ₹47.90 per standard cubic Metre in Delhi.