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On a day when Delhi chief minister Arvind Kejriwal announced an annual fare hike for autorickshaws, Indraprastha Gas Ltd (IGL) that supplies compressed natural gas (CNG) and piped natural gas (PNG) in Delhi, Noida, Greater Noida and Ghaziabad that the running cost of autos will come down by 43 paisa per kilo metre. IGL today announced a price cut on CNG and PNG in the region.
Through this, Delhi would see a drop of Rs 14.90 per kg in the consumer price of CNG in Delhi and Rs 16.55 per kg in the consumer price of CNG in Noida, Greater Noida and Ghaziabad. The new consumer price of Rs. 35.20 per kg in Delhi and Rs 40.15 per kg in Noida, Greater Noida and Ghaziabad would be effective from today midnight.
In a major bonanza for all its domestic PNG consumers, IGL has announced reduction in the consumer prices in both price slabs as well as 20 per cent increase in quantity of gas in the lower price slab. Lower price slab was earlier applicable for consumption upto 30 standard cubic metre in two months, which has now been enhanced upto 36 scm in two months. IGL is a joint venture of GAIL (India) Ltd, BPCL and government.
“This 30 per cent reduction in CNG prices will have a major impact on per km running cost of CNG run vehicles in the capital, thereby drastically reducing the cost of travel. For autos, the per-kilo metre running cost will come down by 43 paisa per km, while for taxis, it would reduce by 72 paisa per km. In case of buses, the running cost will decrease by over Rs 4.25 per km,” the company said in a statement.
With the revised price, CNG would offer 65 per cent savings towards the running cost when compared to petrol driven vehicles at the current level of prices. When compared to diesel driven vehicles, the economics in favour of CNG at revised price would be 36 per cent. IGL is currently catering to nearly 7,50,000 CNG vehicles in the capital, which include nearly 4,50,000 private cars.
The consumer price of PNG to the households in Delhi in the lower slab is being reduced from Rs 29.50 per scm for consumption upto 30 scm in two months to Rs 24.50 per scm up to consumption of 36 scm in two months, with effect from tomorrow. In the higher slab, for consumption beyond 36 scm in two months, the applicable rate in Delhi would be Rs 47 per scm, which was earlier Rs 52 per scm beyond consumption of 30 scm in two months.
Due to differential tax structure in the state of Uttar Pradesh, the applicable price of domestic PNG in the lower slab to households in Noida, Greater Noida and Ghaziabad would be Rs 26.20 per scm up to consumption of 36 scm in two months, which has been reduced from existing Rs 31 per scm for consumption upto 30 scm in two months. In the higher slab, for consumption beyond 36 scm in two months, the rate applicable in these cities would be Rs 47.65 per scm, which was earlier Rs 54 per scm beyond consumption of 30 scm in two months.
Announcing the reduction in prices of CNG and domestic PNG, Mr Narendra Kumar, Managing Director, IGL said, “Subsequent to the increase in our domestic gas allocation to meet the full requirement for CNG and domestic PNG by the government, IGL has decided to pass on the entire benefit to its esteemed consumers by reducing the consumer prices.” Kumar added that the initiative of the government would encourage use of CNG and PNG in the entire country thereby giving a boost to the CGD sector, which will lead to reduction in pollution levels in the cities.
