CNG, piped cooking gas get cheaper in Delhi as Indraprastha cuts prices by up to Rs 6

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The prices of CNG and piped cooking gas have been cut by up to Rs 6 in Delhi, Indraprastha Gas Limited (IGL) has announced. The revised gas prices will come into effect from today.

This is the first time in two years that gas prices have been reduced. The revised rates were announced after the government changed the pricing formula of natural gas earlier this week.

Now, instead of using rates in the four international gas hubs, the locally produced fuel is being benchmarked to the cost of imported crude oil subject to a cap of $6.5 per million British thermal unit. The pricing formula kicked in from Saturday with the oil ministry announcing a gas price of $7.92 per mmBtu for the remainder of the month. But due to the cap, the gas will cost only $6.5 to city gas retailers like IGL.

From tomorrow, CNG will be available in the national capital region for Rs 73.59 per kg, down from Rs 79.56, IGL said in a Twitter post. “The revised retail price of CNG in Delhi would be Rs 73.59 per kg wef 6 am on 9th April 2023," the tweet read. The revised retail price of CNG in Noida, Greater Noida, and Ghaziabad would be Rs 77.20 per kg, and Rs 82.62 per kg in Gurugram.

The price of gas piped to household kitchens or PNG has also been slashed to Rs 48.59 per standard cubic metre from Rs 53.59 per scm. The reduction follows an over 80 percent increase in prices over the past two years.

IGL said in the tweet that 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 wef 9th April 2023. The revised retail price of PNG in Noida, Greater Noida & Ghaziabad would be Rs 48.46 per scm wef 9th April 2023. The revised retail price of PNG in Gurugram, Rewari, Karnal & Kaithal would be Rs.47.40 per scm.”

CNG prices in Delhi were increased 15 times between April 2021 and December 2022; the last price hike was announced on December 17, 2022. According to news agency PTI, since April 2021, CNG prices have been hiked 83 percent, by Rs 36.16 per kg.

PNG prices too have increased 81 percent since August 21, during which period it was revised upwards ten times till October 8, 2022.

The climbing rates were a result of an increase in energy prices the world over due to geopolitical conflicts.

(With PTI inputs)