Idraprastha Gas cuts CNG price by Rs 0.20 per kg

NEW DELH: Indraprastha Gas Ltd, the company that sells compressed natural gas to automobiles in the national capital region, on Tuesday cut CNG price by Rs 0.20 per kg to Rs 18.90 per kg in view of 2 per cent cut in excise duty announced in the Union Budget last week.

The new price came into effect from midnight of March 3/4, IGL Managing Director Om Narayan said.

However, there would be no revision in price of piped natural gas (PNG) being supplied to domestic and commercial consumers at this point of time.

"The reduction in the price of CNG has come on account of adjustment as a result of decrease of 2 per cent in excise duty announced in the Union Budget," he said.

Consumer interest is paramount in our enterprise. Therefore, we have decided to pass on the reduction in excise duty to our esteemed customers," he said. The retail price of CNG in Delhi at Rs 18.90 per kg is the cheapest in the country.

With the revised price, CNG would offer over 70 per cent savings in 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 over 40 per cent.

IGL is currently catering to over 1,50,000 CNG vehicles in the capital, which include over 50,000 private cars.