Consumers may have got some relief from the rising auto fuel prices for political reasons, but there seems to be no respite from rising CNG prices. Capital’s monopoly CNG player Indraprastha Gas Ltd (IGL) has decided to increase prices by Rs 0.30, pushing it to Rs 29.30 per kg. This is the second rise in prices the current calendar year.
The increase will be effective from midnight today, said an official in Delhi Petrol Dealers Association.
The capital city has more than 400,000 CNG vehicles. An IGL official said the increase has been on account of rise in operational costs. The first rise was taken in January when prices rose by Rs 1.25 per kg. Between last June when APM gas prices were increased and now, CNG price in Delhi has gone up by nearly 34 per cent.
By contrast, petrol price has seen an increase of nearly 22 per cent since decontrol on June 26 last year.
Despite the fact that import parity price has been rising, oil marketing companies such as Indian Oil, Bharat Petroleum and Hindustan Petroleum have not increased prices since mid-January. Currently, these companies are incurring an under-recovery of around Rs 3 on every litre on petrol.
Price of another auto fuel diesel, which is still regulated by the government, has not been increased since June 26 last year and the companies are incurring an under-recovery of around Rs 11 per litre.