IGL drops,Compressed natural gas,piped natural gas rates
Indraprastha Gas Ltd, which sells gas to vehicles and households in the NCR (national capital region, on Friday reduced prices in keeping with the Centre’s promise but a reduction in transport fares remains doubtful.
The price of CNG, or compressed natural gas, was reduced by Rs 14.90 per kg to Rs 35.20 per kg from Rs 50.10 per kg.
PNG (piped natural gas in kitchens) price was reduced by Rs 5 per unit for both consumption slabs. The quantity for these slabs too were raised by 20%.
The CNG price in Delhi was on Friday cut by a steep Rs14.90 per kg and cooking gas piped into kitchens by Rs5 per unit with effect from Friday midnight.
The Compressed Natural Gas (CNG) will cost Rs35.20 per kg against the current rate of Rs 50.10 per kg. The rates of Piped Natural Gas (PNG) that households use for cooking, was also cut by Rs5 per standard cubic meters (scm) per day.
This is the first reduction in fuel rates in almost six years. CNG rate was cut in March 2008 when prices were cut by 30 paise following a reduction in excise duty.
However, the relief may be temporary, as the domestic natural gas prices will almost be doubled to $8-8.2 from 1 April. The rate hike may translate into a CNG price increase of Rs10.6 per kg and PNG rates of Rs 8/scm.
PNG rate cut was for both the consumption slabs. Simultaneously, the firm that retails CNG and PNG in the national capital region, announced 20% increase in quantity in the lower consumption slab.
Consumer price of PNG to households in Delhi in the lower slab is being cut from Rs29.50 per scm for consumption upto 30 scm in two months to Rs24.50 per scm for consumption of up to 36 scm in two months with effect from 8 February 2014.
In the higher slab, for consumption beyond 36 scm in two months, applicable rate in Delhi would be Rs47/scm, which was earlier Rs52/scm beyond consumption of 30 scm in two months.
The rate cut follows oil ministry’s decision to give city gas distribution firms cheaper domestic gas to meet all their needs for CNG and PNG supplies compared to the previous limit of 80% for most states.
As a result, CNG price in Noida, Greater Noida and Ghaziabad has been cut by Rs16.5 per kg to Rs40.15 per kg. Due to differential tax structure in Uttar Pradesh, the applicable price of domestic PNG in the lower slab to households in Noida, Greater Noida and Ghaziabad would be Rs26.20/scm upto consumption of 36 scm in two months. This has been reduced from existing Rs31/scm for consumption upto 30 scm in two months.
In the higher slab, for consumption beyond 36 scm in two months, the rate applicable in these cities would be Rs 47.65/scm. This was earlier Rs 54/scm beyond consumption of 30 scm in two months, IGL said in a statement.
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