Compressed natural gas (CNG) prices in the National Capital Region will go up with effect from Monday midnight. Indraprastha Gas Limited (IGL) said the revision in price would result in an increase of Rs 1.70 a kg in Delhi and Rs 1.90 a kg in Noida, Greater Noida and Ghaziabad.
“The new consumer price of Rs 35.45 a kg in Delhi and Rs 39.80 a kg in Noida, Greater Noida and Ghaziabad would be effective from 12 midnight of 5th/6th March 2012,” IGL said in a release here on Monday.
Mr M. Ravindran, Managing Director, IGL said, “We are constrained to revise the retail price of CNG due to increase in the overall input cost of natural gas being sourced by us as a result of increased dependence on imported Spot R-LNG.”
He said the proportion of costly imported R-LNG (regasified liquid natural gas) vis-à-vis domestic gas in the overall pool of natural gas being procured for supply as CNG had risen to around 25 per cent and was constantly on the rise as any additional CNG demand had to be met through Spot R-LNG. The allotted APM gas has already been fully utilised by IGL and there has been a complete stoppage of KG D-6 supplies since September 2011.
Mr Ravindran said that with the CNG demand rising rapidly in the region, IGL was left with no alternative but to source costly Spot R-LNG at well over three times the cost of domestic gas, such as APM and KG D-6, to maintain supplies.
“As R-LNG prices in the Asian region are primarily linked directly with crude prices, the recent sharp increase in Brent crude prices has had its impact on the gas prices too”, he added.
IGL is a joint venture of GAIL (India) Ltd., BPCL and Government of NCT of Delhi.