After petrol, it is now the turn of compressed natural gas (CNG). The capital’s monopoly CNG player, Indraprastha Gas Ltd (IGL), will raise prices by Rs 1.25 a kg with effect from midnight, the third increase in the current financial year. Oil marketing companies also increased the price of aviation turbine fuel (ATF) by around two per cent to Rs 47,815.50 a kilolitre.
While CNG prices have increased over 32 per cent since June, petrol prices have risen around 14 per cent after the decontrol.
Around 350,000 vehicles, including buses and auto-rickshaws, ply on CNG in Delhi and the national capital region. The rise in prices will result in an increase of Rs 1.25 a kg in the consumer price of CNG in Delhi and Rs 1.50 a kg in Noida, Greater Noida and Ghaziabad. Now, CNG consumers in Delhi will have to pay Rs 29 a kg, while those in Noida, Greater Noida and Ghaziabad will have to shell out Rs 32.50 a kg.
In the case of petrol, where oil marketing companies have increased prices eight times in the current financial year, the cumulative increase of 16.56 per cent is comparatively lower than CNG. Petrol prices were decontrolled with effect from June 25 last year. CNG prices are also out of the government regulation.
Another significant petroleum product free from the government control is ATF.
Prices have been raised 5.7 per cent since December 1, 2010, on rising crude oil price. Airlines are now bracing for an increase in the fuel surcharge to offset the hike.
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“We are constrained to revise prices because of the increase in overall input cost of gas, its corresponding taxes and duties and marginal increase in operating expenses,” said Rajesh Vedvyas, managing director, IGL.
Vedvyas told Business Standard that the supply contract of 260,000 cubic metres of gas per day to the company at a price of Rs 20 a kg had lapsed from January 1.
He added the company was now sourcing the quantity, which accounts for 10 per cent of its total consumption, at a price of Rs 30 a kg from Gail. He said the increase had nothing to do with the recent price rise of Rs 2.95-2.96 a litre in petrol.
Meanwhile, IGL has also revised piped natural gas (PNG) prices. Prices in Delhi has been raised from Rs 16.85/standard cubic metre (SCM) to Rs 18.95/SCM up to the consumption of 90 SCM in four months. Beyond the consumption of 90 SCM in four months, the applicable rate in Delhi will be Rs 26/SCM.
Due to a different tax structure in Uttar Pradesh, the applicable price of domestic PNG to households in Noida, Greater Noida and Ghaziabad will be Rs 20.42/SCM up to the consumption of 90 SCM in four months, compared to the existing Rs 18.32/SCM. Beyond consumption of 90 SCM in four months, the rate applicable will be Rs 26/SCM.