Torrent Gas on Saturday said it has cut CNG prices by up to Rs 8.25 per kg and piped cooking gas prices by up to Rs 5 following the government move to reduce input natural gas prices.
Torrent Gas has licences to operate city gas networks retailing CNG to automobiles and piped natural gas, called PNG, to household kitchens in 34 districts across the country, including in Chennai and Jaipur.
In a statement, the firm said it is effecting ”a significant reduction of between Rs 4 per standard cubic meter to Rs 5 per SCM in the price of domestic PNG and between Rs 6 per kg to Rs 8.25 per kg in the retail price of CNG in its areas of operation across the country effective from today evening”.
This will make CNG up to 47 per cent cheaper when compared to petrol and 31 per cent cheaper when compared to diesel. Similarly, domestic PNG will now be up to 28 per cent cheaper when compared to domestic LPG. On Friday, the government revised the pricing of natural gas and imposed a cap or ceiling of USD 6.5 per million British thermal unit.
This ceiling price is compared with USD 8.57 per mmBtu rate previously. This reduction in natural gas price is now translating into cuts in CNG and PNG rates.The government of India’s decision to revise the domestic natural gas pricing guidelines and the consequent reduction in PNG and CNG prices will bring significant respite to millions of households and CNG vehicle owners, the statement said.
Speaking on the development, Jinal Mehta, Director of Torrent Gas said, ”The revised gas pricing guidelines will help reduce the volatility in CNG and Domestic PNG prices in the country and the long-term roadmap provided under the revised guidelines will encourage large-scale adoption of CNG and Domestic PNG across the country.”
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