 "Domestic gas producers face 18% price reduction")
Indraprastha Gas Ltd (IGL), the sole supplier of compressed natural gas (CNG) and piped natural gas (PNG) in the national capital region on Thursday announced a cut in the prices of the two clean fuels to align the rates with the new reduced natural gas prices.
IGL cut CNG prices by 80 paise to Rs 37.20 per kg while PNG prices were slashed by 70 paise to Rs 24.65 per standard cubic meter (scm) in Delhi. For consumers in Noida, Greater Noida and Ghaziabad, CNG prices have been cut by 90 paise to Rs 42.60 per kg and PNG prices by 90 paise to Rs 26.15 per scm.
With the revised price, CNG would offer over 56 per cent savings towards running cost when compared to petrol driven vehicles at the current level of prices. When compared to diesel vehicles, the economics in favour of CNG at revised price would be over 17 per cent, IGL said.
India Ratings (Ind-Ra), a research and ratings agency, had said the latest 18 per cent cut by the government in domestic natural gas prices to $3.82 a unit could lead to a reduction in CNG prices by up to Rs 3 a kg and of PNG prices by Rs 2.3 a unit.
“Ind-Ra expects the benefit of lower gas prices to continue to be passed on to consumers. It further expects a Rs 2.1-2.3 per scm cut in PNG prices and Rs 2.8-3.0 per kg cut in CNG prices,” the Fitch Group entity said.
