Indraprastha Gas Ltd (IGL) has decreased compressed natural gas (CNG) prices with effect from April 9. CNG will now cost Rs 73.59 per kg in Delhi, while Rs 77.2 per kg in Noida, Greater Noida, and Ghaziabad, and Rs 82.62 per kg in Gurugram, Haryana.
The IGL on Saturday said: “As an organisation committed to maximising customer value, IGL has announced significant reduction in prices of CNG and PNG in its areas of operation.” The price cut will also be effective in other areas of Uttar Pradesh. “The revised retail price of CNG in Kanpur, Fatehpur and Hamirpur would be Rs 84.42 per kg with effect from 6 am on April 9,” IGL said.
The revised retail price of PNG in Kanpur, Fatehpur, and Hamirpur would be Rs 51.10 per standard cubic metre from April 9. Prices will also be lowered in areas of Rajasthan, where IGL operates. The revised retail price of PNG in Ajmer, Pali, and Rajasmand would be Rs 54.23 per standard cubic metre from Sunday.
The IGL’s reduction in CNG prices comes after the Union Cabinet on Thursday approved a new formula for pricing natural gas, which includes a cap or ceiling price. This move aims to decrease the prices of CNG and piped cooking gas by up to 10 percent.
As a result, Adani Total Gas Ltd (ATGL) reduced the prices of CNG by up to Rs 8.13/kg and piped natural gas (PNG) by up to Rs 5.06/kg for its customers. The ATGL also lowered PNG prices for industrial and commercial consumers by Rs 3.0/scm across Ahmedabad, Vadodara, Faridabad, Khurja, and Palwal. This will encourage the adoption of PNG by industrial and commercial consumers. In a statement, the ATGL welcomed the Indian Government’s decision to link the APM price for gas supply to CNG vehicles and residential households to 10% of the monthly average of the Indian crude basket, with a floor of $4 and a cap of $6.5 per MMBTU.
The Mahanagar Gas Ltd (MGL), a subsidiary of GAIL, had also announced on Friday a reduction in the retail price of CNG by Rs 8 per kg and domestic PNG by Rs 5 per standard cubic metre (SCM) across its licensed areas. The new prices kicked in on Friday midnight.