CNG prices in Delhi, NCR raised by up to 55 paise per kg

State-run Indraprastha Gas Limited (IGL) today announced an upward revision in the price of compressed natural gas (CNG) in Delhi and neighbouring towns of Noida, Greater Noida and Ghaziabad.

CNG prices in Delhi will go up by 50 paise per kg while in neighbouring Noida and Greater Noida, it will go up by 55 paise per kg - a sign of an impending hike in the prices of liquefied petroleum gas (LPG) as well.

CNG will now cost Rs29.80 per kg in Delhi and Rs33.40 per kg in Noida, Greater Noida and Ghaziabad, IGL said in a release, adding that t hike increase would be effective midnight tonight.

"The correction in prices would result in an increase of 50 paise per kg in the consumer price of CNG in Delhi and 55 paise per kg in the consumer price of CNG in Noida, Greater Noida and Ghaziabad," IGL said.

"We are constrained to revise the retail price of CNG because of increase in the actual weighted average cost of gas in the current quarter," Rajesh Vedvyas, managing director of IGL, said.

He said the price revision has become inevitable as the company has to source CNG supplies outside the administered price mechanism (APM).

He said in addition to the allotted APM and KG- D6 gas, IGL has to source gas from RLNG at much higher prices as also from the spot market to meet the increasing demand for CNG.

This, however, would have minimum impact on the running cost of CNG vehicles, he said, adding that CNG will still offer 66 per cent saving in fuel costs for petrol-run vehicles while it will give a 21 per cent saving in fuel cost compared to diesel-run vehicles.