Announcing a 4 percent hike, public sector Indraprastha Gas Limited (IGL) said the new consumer price of CNG would be Rs.39.90 a kg in Delhi, and Rs.45.10 in Noida, Greater Noida and Ghaziabad.
IGL said it raised the price due to increased input costs and related taxes.
"There has been a complete stoppage of KG D-6 (gas fields in Andhra Pradesh operated by Reliance Industries-led consortium) supplies to IGL since 2011. Any additional CNG demand has to be met through costly R-LNG (liquefied natural gas), which is available in the market at well over three times the cost of domestic gas supplies under APM (administered price mechanism)," said IGL in a release.
The proportion of costly imported R-LNG to domestic gas in the overall pool of natural gas being procured for supply as CNG is constantly on the rise and has already crossed 25 percent.
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IGL, however, said the increase would have minor impact on the per km running cost of vehicles.
"For autos, the increase would be 4 paise per km, for taxis it would be 7 paise per km and in case of buses, the increase would be 45 paise per km, which translates to less than one paisa per passenger km."