IGL cuts piped gas, CNG prices by up to Rs 6 in Delhi

The prices of Compressed Natural Gas (CNG) and piped cooking gas in the national capital have been slashed by up to Rs 6, marking the first reduction in two years.

The change came after the government changed the pricing formula of natural gas. Indraprastha Gas Ltd (IGL), the firm that retails CNG and piped cooking gas in Delhi, announced that CNG in the national capital will now cost Rs 73.59 per kg, down from Rs 79.56. Similarly, the rates of piped natural gas (PNG) to household kitchens have been cut to Rs 48.59 per standard cubic metre from Rs 53.59 per scm.

This reduction comes after an over 80 per cent increase in prices over the last two years. CNG prices have been hiked 15 times between April 2021 and December 2022.

Since April 2021, CNG prices have increased by Rs 36.16 per kg, or 83 per cent. Similarly, PNG rates have increased by 10 times between August 7, 2021, and October 8, 2022. In all prices have gone up by Rs 24.09 per scm, or 81 per cent.

The rise in energy prices internationally due to geopolitical conflicts is the primary reason for this hike in prices. However, the change in the way the price of natural gas is calculated has resulted in a reduction in prices.

Instead of using rates in four international gas hubs, the locally produced fuel is now benchmarked to the cost of imported crude oil subject to a cap of USD 6.5 per million British thermal unit.

This cap price of USD 6.5 per mmBtu compared with USD 8.57 rates prevalent previously.

The pricing formula kicked in from Saturday with the oil ministry announcing a gas price of USD 7.92 per mmBtu for the remainder of the month. Due to the cap, the gas will cost only USD 6.5 to city gas retailers like IGL.

IGL claimed that the retail prices charged by it for CNG and PNG in the national capital “are one of the lowest in the country.”

The revised retail price of PNG in Delhi would be Rs 48.59 per scm, whereas the revised retail price of PNG in Noida, Greater Noida & Ghaziabad would be Rs 48.46 per scm, and in Gurugram, Rewari, Karnal & Kaithal it would be Rs.47.40 per scm. Similarly, the revised retail price of CNG in Delhi would be Rs 73.59 per kg, Rs 77.20 in Noida, Greater Noida and Ghaziabad and Rs 82.62 per kg in Gurugram. ( With inputs from PTI)