CNG Prices Surge in Delhi Amidst Rising Input Costs

CNG prices in Delhi and neighboring cities rose by Rs 2 per kg, marking the third hike in two weeks. Indraprastha Gas Ltd attributes this to rising input costs. Piped natural gas rates remain unchanged, but the impact is felt across public and private transport sectors relying on CNG.

Compressed natural gas (CNG) prices in the national capital and adjoining cities were raised by Rs 2 per kg on Tuesday, marking the third increase in less than two weeks amid rising input costs.

CNG now costs Rs 83.09 per kg, up from Rs 81.09, according to Indraprastha Gas Ltd, the country's largest city gas company that sells CNG to automobiles and piped natural gas (PNG) to households and industries in Delhi and adjoining cities. However, there was no revision in the rates of piped natural gas used by household kitchens for cooking.

The third increase in rates since May 15 took the cumulative increase in CNG prices to Rs 5 per kg. The prices were last increased by Rs 1 per kg on May 23. Prices had gone up by Rs 2 per kg on May 15.

In Mumbai, where rates were last revised on May 14, CNG costs Rs 84 per kg.

The CNG price hike in the national capital came just as state-owned fuel retailers started delayed passing on the impact of higher international oil prices to consumers. Petrol price has been increased by Rs 7.35 per litre and diesel by Rs 7.53 in four instalments.

Rates of petrol and diesel, as well as CNG, vary from state to state depending on the incidence of VAT.

According to IGL, CNG in Noida and Ghaziabad will now cost Rs 91.70 per kg, while in Gurugram, it will be priced at Rs 88.12 per kg.

PNG continues to be priced at Rs 49.59 per standard cubic metre in Delhi. In Mumbai, PNG costs Rs 51.50 per standard cubic metre.

After the Iran war disrupted energy supplies, the government prioritised available gas supply to domestic households. Rates for PNG for domestic cooking were kept unchanged.

But for CNG, the city gas retailers had to rely partly on costlier imported gas. This has translated into CNG price hikes, industry sources said.

The repeated hikes are expected to raise running costs for private vehicle owners, taxis and public transport fleets that rely on CNG, though the fuel continues to remain cheaper than petrol and diesel on a per-kilometre basis.