Costlier natural gas to push up CNG, PNG prices

The recent doubling of the domestic natural gas price will make CNG dearer by `16 per kg and piped kitchen gas by `10 per standard cubic meter (SCM), adding to the sharp increases witnessed in the past six months. The local natural gas price increased 110% to $6.1 per mmBtu from April 1. Since then, city gas companies have taken some hikes but more could be in the offing.

In Delhi, Indraprastha Gas (IGL) has increased rates of CNG by `4 and that of PNG, used in cooking, by Rs 5 per unit.

Rates could rise further by Rs 12 for CNG and Rs 5 per unit for PNG in Delhi, according to industry executives. The increases could be similar in other parts of the country, with the quantum being slightly more in areas with higher local taxes.





In Ahmedabad, Adani Gas has already increased CNG prices by Rs 5 per unit. The fresh hikes are on top of 30-37% increases in CNG prices in several parts of the country in the six months to March.