Page 6 - Cng

MGL slashes CNG price by Rs 2.50 per kg; leaves PNG prices unchanged

After nearly half a dozen times of hikes, the city gas utility Mahanagar Gas on Tuesday announced a reduction of Rs 2.50 per kilogram to Rs 87 a kg in the price of compressed natural gas (CNG), effective from Wednesday. Mahanagar Gas Ltd (MGL), however, left the price of cooking gas PNG unchanged. Since April 6, the price of CNG had gone up by Rs 29.50 per kilogram and that of piped natural gas (PNG) for residential use by Rs 18.50 at Rs 54. CNG price on November 4, 2022 had peaked at Rs 89.50 per kilogram and that of PNG at Rs 54 a kg. The state-owned company said the marginal cut in prices is in anticipation of the increased allocation of domestically-produced natural gas from high pressure-high temperature areas to distribution entities by the oil ministry, which lowers its input gas cost. After this reduction, the retail price of the fuel will come down to Rs 87 per kg in and around Mumbai, MGL said in a statement. This is the first price reduction since the second week of Ap

IGL Q3 net profit drops 11% at Rs 334 cr on holding CNG, piped gas prices

Indraprastha Gas Ltd, the firm that retails CNG and piped cooking gas in the national capital and other cities, reported 11 per cent drop in third quarter net profit after it held retail prices despite rise in input cost. Consolidated net profit of Rs 334.06 crore in October-December 2022 is compared with Rs 374.76 crore a year back, according to the company's filing with stock exchanges. The firm saw more than doubling of the cost it incurs on procuring natural gas, which is converted into CNG for sale to automobiles and piped to household kitchens for cooking purposes. Revenue from operations soared to Rs 4,089.03 crore in the third quarter of current fiscal year from Rs 2,438.48 crore in the year-ago period. "For the quarter ending December 2022, IGL registered an overall sales volume growth of 6 per cent over the corresponding quarter in the last fiscal, with the average daily sale going up from 7.66 million standard cubic meters to 8.12 million standard cubic meters per day,"

The gas paradox: Govt encouraging huge investment to push demand

But imposing policies that deter domestic exploration and production

Environment-friendly CNG replaces diesel as fuel on boats in Varanasi

Noisy and polluting boats on the Ganga river are now plying on environment-friendly CNG as part of a plan to cut noise and air pollution on the holy river. As many as 583 boats already have CNG engines and plans are afoot to replace the entire fleet of boats operating on banks of the holy city of Varanasi with environment-friendly fuel, Oil Minister Hardeep Puri said on Sunday. These boats are being supplied CNG from India's first floating CNG station built by GAIL at Namo Ghat. "In July last year Prime Minister had desired that boats on holy Ganga should be run on CNG. Against the target of 500 boats, 583 have already switched to CNG and we are working to get 2,000 boats to convert," he said. To promote the fuel, a race of CNG-run boats was organised on banks of this holy city. Compared to diesel-fuelled boat engines, CNG engines produce less pollution and do not emit harmful gases like sulphur dioxide. CNG engines are also much quieter, thereby minimising the adverse effects the

Adani firm hikes CNG price by Re 1 in Gujarat; to cost Rs 80.34 per kg

Private player Adani Total Gas Limited hiked the price of compressed natural gas (CNG) in Gujarat by Re 1 per kilogram effective from Monday. This has taken the price from Rs 79.34 to Rs 80.34 per kilogram, said Arvind Thakkar, president of Federation of Gujarat Petroleum Dealers Association. The hike by Adani Total Gas Limited comes days after state-run Gujarat Gas raised the price of CNG by nearly Rs 3.5 per kg, Thakkar added.

Assam CM flags off 100 CNG buses, inaugurates 1st green fuel station

Assam Chief Minister Himanta Biswa Sarma on Sunday flagged off 100 new CNG-run buses, as part of the Smart City Mission. He also inaugurated the city's first CNG fuel station. The CM said the launch of the CNG-run buses and the inauguration of the fuel station were decisive steps for "gradual but firm mitigation" of the impacts of climate change and global warming. The CNG buses were gifted by Guwahati Smart City Ltd to Assam State Transport Corporation. The passenger vehicles are equipped with air-conditioning, fire-detection, global positioning systems and several other features, and will be operated by ASTC. Noting that excessive use of fossil fuel, such as petrol and diesel, is the prime reason for global warming, the CM said the carbon emission from the use of such energy is creating climatic imbalances in many parts of the globe, including Assam. It is important that "all must unite to mitigate the impacts of climate change and work out a long-term and permanent solution",

Rising gas prices constrain CNG penetration in commercial vehicles: Icra

Rising gas prices have constrained CNG penetration in commercial vehicles to 9-10 per cent in the current fiscal from peaks of 16 per cent, Icra Ratings said on Friday. A spurt in global energy prices has led to a 70 per cent jump in the price of CNG in the last one year. This has narrowed the gap between the fuel and diesel, blurring the incentive to shift to the cleaner fuel. In a statement, the rating agency said CNG penetration in the domestic commercial vehicle (CV) sector has witnessed a decline in the current fiscal, especially in the MCV truck segment. "Rising CNG prices have narrowed the gap with diesel and in turn, diminished the running cost savings from CNG vehicles, which has been the key deterrent," it said. Notwithstanding the recent decline witnessed in CNG penetration, medium-term prospects remain favourable given the improving CNG fuelling infrastructure and push for cleaner vehicles, it added. Icra said CV industry has witnessed a contraction in the penetration

Cut excise duty on CNG till gas is included in GST: Kirit Parikh panel

The Union government should moderate the excise duty it levies on CNG till such time that the environment-friendly natural gas is included in the one-nation-one-tax GST regime, Kirit Parikh Committee has recommended. Natural gas is currently outside the ambit of GST, and existing legacy taxes -- central excise duty, state VAT and central sales tax -- continue to be applicable on the fuel. While the central government does not levy excise duty on natural gas when sold in gaseous form, it charges a 14 per cent tax on compressed natural gas (CNG). States levy VAT as high as 24.5 per cent on gas. The Parikh Committee, which was formed to recommend fair price of gas to the end consumer and a "market-oriented, transparent and reliable pricing regime", in its report to the Oil Ministry last week suggested that "gas should be brought under the GST regime". "The committee recognise that this requires consensus among the states," it said. "To obtain this, if need be the states may be ...

Phase out diesel autos in NCR by 2026: Centre to UP, Rajasthan, Haryana

The Centre's air quality panel has directed Uttar Pradesh, Rajasthan and Haryana to register only CNG and electric autos from January 1 and complete the phase out of the diesel ones in the National Capital Region by the end of 2026. The Commission for Air Quality Management issued an order on Wednesday, saying the target was that only CNG and e-autos ply in the NCR from January 1, 2027. It directed the three states to ensure registration of only CNG and e-autos from January 1 in the NCR and phase out diesel autos in a graded manner by the end of 2026. The NCR covers Delhi, 14 districts of Haryana, eight districts of Uttar Pradesh and two districts of Rajasthan. Delhi had launched a programme in 1998 to convert its fleet of diesel auto rickshaws into CNG ones. No diesel-run auto is registered in Delhi at present. The Delhi Transport Department had launched a scheme in October last year for registration of 4,261 e-autos.

Kirit Parikh panel may recommend price caps to help moderate CNG rates

A government-appointed gas price review panel, led by Kirit Parikh, is likely to recommend price caps for natural gas produced from legacy fields of state-owned firms to help moderate CNG and piped cooking gas rates, while keeping the pricing formula for difficult fields unchanged. The panel, which was tasked with suggesting a "fair price to the end-consumer" while ensuring "market-oriented, transparent and reliable pricing regime for India's long-term vision for ensuring a gas-based economy", may opt to suggest two different pricing regimes, officials said. For the legacy or old fields of Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL) -- where the cost has long been recovered and which are currently governed by a formula that uses rates in gas-surplus nations such as the US, Canada and Russia -- the committee is likely to recommend a floor or minimum base price and cap or ceiling rates. This would ensure that prices do not fall below cost of production, as they did

Toyota Kirloskar forays into CNG segment; introduces 2 new models

Toyota Kirloskar Motor on Wednesday announced its foray into the CNG segment with the launch of Glanza and Urban Cruiser Hyryder trims with the environment-friendly powertrain. The two CNG trims of Glanza are priced at Rs 8.43 lakh and Rs 9.46 lakh respectively. The company, however, did not disclose the price of Urban Cruiser Hyryder CNG variants. Toyota Kirloskar Motor (TKM) Associate Vice President, Sales, and Strategic Marketing, Atul Sood said that being a customer centric company, the automaker believes in placing customers' interest at the forefront. "Our goal at Toyota has always been to serve the market needs with a clear focus on customers' aspirations, and by providing the most viable products and services to our customers. "With the same vision in mind, we are delighted to announce our foray in the CNG segment, driving in CNG variants for two of our much sought-after offerings, the Toyota Glanza and the Urban Cruiser Hyryder," he noted. With the latest addition, the .

One in every 10 petrol pumps in India now offering CNG, EV charging

India has about 84,600 fuel retail outlets, of which 8,900 offer alternative fuels such as CNG, auto LPG or EV charging facilities

Minister Jitu Vaghani announces 10 pc VAT cut on CNG, PNG in Gujarat

Gujarat Education Minister Jitu Vaghani on Monday announced 10 per cent value-added tax (VAT) reduction on compressed natural gas (CNG) and piped natural gas (PNG) by the state government

Kejriwal flags off 50 CNG buses for better connectivity with rural NCR

Delhi Chief Minister Arvind Kejriwal on Tuesday flagged off 50 low-floor CNG-powered cluster buses and said they will improve connectivity to the rural belts of the national capital. He also flagged off 30 Innova cars and 36 motorbikes for the enforcement wing of the Transport Department. "These vehicles will be involved in enforcing lane discipline. From April onwards, we started the lane discipline drive," he said at the event. Kejriwal said there will be 1,800 electric buses on the roads of Delhi by 2023, while 80 per cent of the city's bus fleet will be electric by 2025. The government has floated a tender for 1,500 electric buses, and by November next year, 1,800 such buses will be playing on Delhi roads, he said. "We have inducted 50 new low-floor CNG (air-conditioned) buses. Form many years, when people faced inconvenience since there were no buses. But in the last two three years, electric, CNG, cluster buses have been inducted," he added. The new buses will be kept at th

How will high global natural gas prices affect India?

Ahead of the winter, Europe is making desperate attempts to purchase natural gas from sources other than Russia, putting Asia in a tight spot. What does it mean for India? Let us find out

TMS Ep273: Protectionism, bullish CEOs, gas prices, demat and trading a/c

Why is India Inc protectionist? Why are global CEOs bullish about India? Will the spike in natural gas prices affect related stocks? What is a demat and a trading account? All answers here

CNG price shoots up by Rs 6 to Rs 86/kg; PNG up by Rs 4 to Rs 52.50/SCM

City gas utility Mahanagar Gas has increased the retail price of compressed natural gas (CNG) and piped natural gas (PNG) by Rs 6/kg and by Rs 4/ SCM respectively in and around the megapolis from Monday midnight. Accordingly, the revised retail price of CNG will be Rs 86/kg and domestic PNG will be Rs 52.50/SCM, MGL said in a statement on Monday evening. The state-run company blamed the 40 per cent increase in input prices by the government from October 1 for the steep increase in the retail prices along with the supply cut. The oil ministry's petroleum pricing & analysis cell on September 30 announced new prices for the next six months from October 1, wherein domestically produced gas prices were increased by a steep 40 per cent. In April 1, the same had been increased by a much higher 110 per cent, citing rising international prices. The government revises gas prices twice annuallyfrom April 1 to September 30 and from October 1 to March 31. So, the price for October 1 to March ..

Natural gas prices hiked 40% to record levels; CNG, PNG to cost more

This includes difficult and newer fields operated by Reliance Industries and partner BP in the KG basin

Natural gas prices hiked 40%; CNG, piped cooking gas to cost more

Prices of natural gas, which is used to generate electricity, make fertiliser and is converted into CNG to run automobiles, were on Friday hiked by a steep 40 per cent to record levels, in step with global firming up of energy rates. The rate paid for gas produced from old fields, which make up for about two-thirds of all gas produced in the country, was hiked to USD 8.57 per million British thermal units from the current USD 6.1, according to an order from the oil ministry's Petroleum Planning and Analysis Cell (PPAC). Simultaneously, the price of gas from difficult and newer fields like the ones in Reliance Industries Ltd and its partner bp plc operated deepsea D6 block in KG basin, was hiked to USD 12.6 per mmBtu from USD 9.92, the order said. These are the highest rates for administered/regulated fields (like ONGC's Bassein field off the Mumbai coast) and free-market areas (such as the KG basin). Also, this will be the third increase in rates since April 2019 and comes on the b

Automakers decrease production of CNG vehicles as natural gas prices rise

CNG automakers have reduced their production targets to 500,000-550,000 vehicles for FY23. At the beginning of the current financial year, this target was 700,000-750,000